Goldman Sachs is set to lay off between 1,300 and 1,800 employees, or roughly 3 to 4 percent of its workforce, as part of its routine annual review process. These reductions, which have already begun, will affect various divisions within the bank. According to Tony Fratto, a spokesperson for Goldman Sachs, this process is considered “normal, standard, and customary,” reflecting the bank’s annual talent review practices. Despite the layoffs, the bank anticipates an overall increase in headcount by the end of the year compared to 2023.
Such workforce adjustments are common among major banks, which often cut underperforming staff to manage costs in challenging economic conditions. For instance, in the first quarter of this year, top US banks collectively eliminated over 5,000 positions, with Citigroup making the largest cuts.
Historically, Goldman Sachs’ annual review has led to workforce reductions ranging from 2 to 7 percent, depending on financial performance and market conditions. Last year, the bank executed a 6 percent reduction in January, followed by further cuts later in the year.
In related news, Goldman Sachs has recently reduced its forecast for a US recession from 25 percent to 20 percent, driven by positive retail sales and improving unemployment claims data. The bank’s economists suggest that a strong jobs report expected on September 6 could further lower the recession risk to 15 percent, a level seen before recent revisions.
