Proactive Investors - Goldman Sachs (NYSE:GS) is planning a renewed round of layoffs targeted at senior managing directors and partners, according to reports.
Around 250 jobs are set to be cut in the coming weeks, The Wall Street Journal reported, amid plans to save US$1bn, announced at the bank’s February investor day.
Goldman had cut 3,200 jobs in January, with the latest cuts signalling a continued spell of reduced dealmaking in its investment wing.
Banking woes and worsening economic outlook had led to the worst start to a year for global dealmaking in a decade, as per Refinitiv data, with first-quarter mergers and acquisitions suffering a 45% decline in value year on year.
These issues had contributed to an 18% fall in Goldman’s first-quarter profits, which slipped to US$3.23bn.
Though Goldman’s latest layoffs target fewer roles, cutting more senior roles could mark an effort to reduce spending on higher salaries, with managing directors paid a base of US$400,000, according to website HB1 Salary Database.
Cuts in the coming weeks may not be the end this year’s layoffs too, with performance-based reductions potentially returning in September for the first time since the pandemic, sources close to the matter added.