Goldman Sachs Group, Inc. (NYSE:GS) is gearing up for another round of job cuts, with plans set to roll out as early as next month, according to a report by the Financial Times. This practice is part of the company’s annual routine, targeting employees identified as underperformers.
Typically, this move impacts around 1-5% of Goldman Sachs’ total workforce, with a focus on trimming positions primarily in key business divisions like investment banking and trading.
Notably, Goldman Sachs has undergone at least three rounds of layoffs since last September, driven by its concerted effort to reduce costs amidst a downturn in deal-making activities. In June 2023, the company announced job cuts affecting over 30 positions in its Asia region’s investment banking sector and contemplated the termination of approximately 125 managing directors worldwide.
During the first quarter of 2023, Goldman Sachs reduced its headcount by 3,200, marking its most significant workforce reduction since the 2008 financial crisis. In September of the previous year, the company also revealed plans to eliminate approximately 500 jobs.
Goldman Sachs’ shares have faced a 4.2% decline over the past three months, in contrast to the industry’s 2.6% growth.
In a parallel trend, UBS Group AG (UBS) and The Charles Schwab Corporation (NYSE:SCHW) have also embarked on staff reductions. UBS is reportedly poised to cut around 3,000 jobs in Switzerland in the coming period. The bank had previously planned to downsize its workforce following the acquisition of Credit Suisse as part of cost-saving measures. UBS anticipates more staff departures during the integration of Credit Suisse, which aligns with its objective of achieving gross cost reductions exceeding $10 billion by the end of 2026.
Meanwhile, SCHW has unveiled a business streamlining plan as a cost-saving strategy. According to filings with the Securities and Exchange Commission, the company will reduce jobs and close or scale down its corporate offices, with the aim of achieving at least $500 million in annual cost savings. This move is in addition to the cost efficiencies linked to the integration of TD Ameritrade, which SCHW acquired in October 2020. These actions collectively reflect the company’s endeavor to simplify its operations in preparation for the post-integration period.
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