Goldman Sachs Group Inc. is considering to cut hundreds of more jobs. Moreover, Bloomberg reported that the company is making these job cuts in a bid to restructure its struggling consumer business.
400 people may lose their jobs
A large number of companies have laid off workers in wake of contemporary economic woes and recession fears. Similarly, Goldman Sachs is planning restructuring which could eliminate more than 400 jobs. Moreover, the job cuts may impact retail banking operations which is suffering from losses. Previously, the bank has already laid off 500 employees in September. Furthermore, the bank indicated in October that the bank in looking to restructure its consumer unit. In addition, Goldman Sachs CEO David Solomon stated that the back is reviewing the headcount of other banking operations units. Significantly, the latest job cuts shows that this move is not part of bank’s annual practice of laying off under-performing workers.
David Solomon’s interview
“We continue to see headwinds on our expense lines, particularly in the near term. We’ve set in motion certain expense mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set. You have to assume that we have some bumpy times ahead. You have to be a little more cautious with your financial resources, with your sizing and footprint of the organization.” CEO David Solomon said at a conference last week.
Dip in bank’s profits
Golaman Sachs is under immense pressure to reduce its expenses. Previously, the company invested heavily on technology and integrated operations which could affect its annual profits. Shockingly, the analysts are predicting a 44% decrease in bank’s annual profit. The increase in consumer unit’s cost has a severe impact on bonus pool this year. Moreover, the consumer business will halt loan originations in the coming months. However, the bank is committed to grow its profitable products in retail and consumer operations.
Browse for job opportunities at Goldman Sachs
Keep up with the latest employment news across United States