Goldman Sachs to Lay Off Hundreds as Part of Annual Review Process

Goldman Sachs, one of the world’s leading investment banks, is preparing to lay off several hundred employees as part of its annual performance review, a move that has become a standard practice within the company. This decision, which was confirmed by a source familiar with the matter, marks the continuation of a policy reinstated in 2022 after a two-year hiatus due to the COVID-19 pandemic.

The layoffs are aimed at underperforming employees and are part of Goldman’s strategic resource assessment. Despite the impending job cuts, a Goldman Sachs spokesperson emphasized that these reviews are routine and “unremarkable.” The spokesperson further added that the bank anticipates having more employees in 2024 than in 2023, signaling confidence in the company’s future growth.

Historically, Goldman’s annual review process has led to a reduction of 1% to 5% of its workforce, with fluctuations based on market conditions and the firm’s financial outlook. The bank’s global workforce stood at 44,300 as of the end of June 2023. While the broader banking environment has improved, with Goldman reporting a significant profit boost in the second quarter, dealmaking activities remain below historical levels.

Earlier reports by the Wall Street Journal suggested that this round of layoffs could affect over 1,300 employees, representing 3% to 4% of the bank’s total workforce. However, Goldman Sachs has disputed these figures, stating that the numbers reported were inaccurate.