New Delhi: Goldman Sachs The company plans to cut several hundred employees as part of its annual evaluation process, which aims to identify and address underperforming employees. Employee,
The financial institution had temporarily suspended performance-based layoffs for a period of two years. COVID-19 pandemicHowever, this practice was resumed in 2022 as the firm resumed its standard valuation procedures.
“Our annual talent reviews are routine, standard and customary, but are not otherwise extraordinary. We expect to have more people working at Goldman Sachs in 2024 than in 2023,” a Goldman spokesperson told Reuters.
Goldman shares rose in afternoon trading and closed up 0.6 percent. The stock has surged a remarkable 32 percent this year, outperforming both broader markets and an index tracking rival large-cap banks.
Last year, between 1 and 5 percent of Goldman's workforce was laid off as a result of this process. The extent of the cuts under Goldman's strategic resourcing assessment has changed over time, depending on market conditions and the bank's financial outlook.
As of June 30, Goldman's global workforce comprised 44,300 employees. The bank has cut headcount multiple times, including through 2023, due to a slowdown in dealmaking and rising long-term interest rates, Reuters reports.
However, the operating environment for banks has improved recently, with Goldman reporting a more than doubling in its second-quarter profit in July, driven by strong performances in loan underwriting and fixed income trading.
The resilience of the U.S. economy has given corporate executives the confidence to make deals, debt sales, and stock offerings. Still, despite industry-wide improvements, dealmaking activity remains below historical averages.
Earlier, the Wall Street Journal reported that the layoffs, which have already begun, would continue until the fall and could affect more than 1,300 employees, representing 3 to 4 percent of Goldman's workforce. However, Goldman said in its statement that the figures cited by the Journal were inaccurate.
The financial institution had temporarily suspended performance-based layoffs for a period of two years. COVID-19 pandemicHowever, this practice was resumed in 2022 as the firm resumed its standard valuation procedures.
“Our annual talent reviews are routine, standard and customary, but are not otherwise extraordinary. We expect to have more people working at Goldman Sachs in 2024 than in 2023,” a Goldman spokesperson told Reuters.
Goldman shares rose in afternoon trading and closed up 0.6 percent. The stock has surged a remarkable 32 percent this year, outperforming both broader markets and an index tracking rival large-cap banks.
Last year, between 1 and 5 percent of Goldman's workforce was laid off as a result of this process. The extent of the cuts under Goldman's strategic resourcing assessment has changed over time, depending on market conditions and the bank's financial outlook.
As of June 30, Goldman's global workforce comprised 44,300 employees. The bank has cut headcount multiple times, including through 2023, due to a slowdown in dealmaking and rising long-term interest rates, Reuters reports.
However, the operating environment for banks has improved recently, with Goldman reporting a more than doubling in its second-quarter profit in July, driven by strong performances in loan underwriting and fixed income trading.
The resilience of the U.S. economy has given corporate executives the confidence to make deals, debt sales, and stock offerings. Still, despite industry-wide improvements, dealmaking activity remains below historical averages.
Earlier, the Wall Street Journal reported that the layoffs, which have already begun, would continue until the fall and could affect more than 1,300 employees, representing 3 to 4 percent of Goldman's workforce. However, Goldman said in its statement that the figures cited by the Journal were inaccurate.