Goldman Sachs Layoff: Underperformers are at high risk

The Goldman Sachs Group, an American multinational investment bank and financial services company, is planning another round of layoff to fire underperformers from the company.

Goldman Sachs Layoff can affect underperformers in October, according to a report by the Financial Times. 

FT reported on Thursday, citing people familiar with the matter, that the new round of layoff is a part of the company’s annual evaluation of staff. The layoff can impact the 1% to 5% of its workforce. Some employees in trading divisions can lose their jobs as soon as late October, according to the report.

In July, David Solomon, the chief executive officer (CEO) of Goldman Sachs, said that the company would resume its regular performance-based layoffs of employees. 

In June, the company said it would take more painful steps to cut costs. Goldman’s managing directors were also called for a meeting. The bank also cut about 250 jobs in May, hinting more job cuts in the coming months. 

In 2022, Goldman Sachs Layoff led to the elimination of 500 workers. The layoffs at the company were halted during the COVID-19 pandemic in 2020 and 2021. 

Goldman Sachs layoff

Earlier this year, Goldman Sachs laid off as many as 3,200 employees in its biggest round of layoffs since the 2008 financial crisis. However, the bank hired junior bankers.

Goldman managers have now started preparing lists of those who may get laid off. Goldman spokesmen are yet to give confirmation on the layoffs.

Layoff tsunami

Mass layoffs have been gaining momentum in recent months. Reportedly, over 65,000 workers were laid off this summer. The layoffs have mostly affected the tech sector. 

Yellow Corporation laid off 30,000 employees this summer. CVS Health laid off 5,000 workers last month in a cost cutting effort, Walgreens laid off 400 employees in July, Biogen laid off 1000 employees, and Zendesk, a Danish-American company, laid off 500 employees.

SecureWorks laid off 300 employees, Haven Technologies laid off 280 employees, Cryptocurrency exchange binance laid off 1000 employees, T-Mobile laid off 5,000 employees, Ford laid off 1,000 employees, and Farmers Insurance laid off 2,400 workers.