Layoffs Watch ’22: Goldman Sachs

Goldman Sachs may not think we’re heading for a particularly cold winter economically, but there’s still a distinct chill in the air at 200 West and the other hives of the Elect around the world.

Goldman Sachs is preparing for a round of layoffs that could come as soon as next week…. Goldman typically revisits its head count every year, letting go of employees based on performance and to match the bank’s needs. It had paused that program during the pandemic, which also coincided with a record period for deal-making, when bankers complained of overwork. The program typically lays off 1 to 5 percent of workers; this round of layoffs is likely to be at the lower end of that range, a person familiar with the matter said.

The cuts are said to be coming company-wide. But as elsewhere on the Street, they’ll be coming more to some parts of the company than others. One part in particular, actually.

Revenue from Goldman’s investment banking division fell 41 percent from the same period in 2021. The firm said its backlog of deals fell, but did not say by how much. At the time, the bank said hiring for the rest of the year would slow…. “They just don’t need as many bodies as they have,” said Chris Connors, a vice president at Johnson Associates, a compensation consulting firm. “Production has fallen off a cliff.”

Goldman Sachs Prepares for Layoffs as Deal-Making Slows [NYT]