Goldman Sachs is laying out over 1,300 employees across multiple business segments worldwide.
The dismissals are part of the bank's annual review targeting ineffective employees.
Goldman Sachs has disclosed strong financial results despite the ongoing restructuring.
Goldman Sachs has begun cutting out over 1,300 people working across the globe as part of its yearly review process. The Wall Street Journal reports that the bank intends to reduce up to 4% of its personnel. This move is part of the organisation's routine "strategic resource assessment," eliminating inefficient workers across various sections.
Impact on Multiple Divisions
The job reductions span several categories within the organisation. Goldman Sachs employs about 45,300 people worldwide so this reduction will significantly impact the organisation. The SRA process is a regular part of the bank's operations, typically resulting in a workforce cut of 2% to 7% each year based on employee performance.
Ongoing economic challenges have likely influenced the scale of this year’s firings and the number of workforce members affected could reach up to 1,800 as the process continues.
In-Office Labour and Employee Performance
In-office attendance has become crucial in this year’s performance evaluations. Goldman Sachs under CEO David Solomon, has focused on getting employees back to the office. Those not meeting in-office attendance expectations are at higher risk of being laid off.
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This shift towards in-office work represents a change from the flexible remote work policies during the COVID-19 pandemic. In recent months, the bank has pushed to return to pre-pandemic work environments. This emphasis on office presence has added pressure on employees, especially those finding the transition back to the office challenging.
Strong Financial Performance Amid Challenges
Despite the staff cuts, the company has reported solid economic results in recent seasons. The institution's venture finance business saw a 21% rise in revenue in the second quarter compared to the same period last year. Additionally, the asset and wealth oversight unit posted a 27% revenue increase during the same time frame.
These positive results come as the financial industry faces broader challenges. Other major financial institutions like Citi and JPMorgan have also implemented layoffs recently. The key question now is how these layoffs will affect Goldman Sachs' ability to navigate the current economic environment.
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