Tag: Goldman sachs

Investment banks had enjoyed a boom year in 2021, as companies launched a huge wave of mergers and acquisitions after coronavirus pandemic lockdowns….reports Asian Lite News

The boss of Goldman Sachs has told staff that he will make job cuts early next month, as the US investment bank seeks to improve its profits amid concerns over the global economy, the media reported.

The bank is reportedly considering cutting about 8 per cent of its 49,000 employees, which could equate to as many as 4,000 job losses. It is also thought to be considering cuts to its bonus pool of up to 40 per cent, The Guardian reported.

It comes as the City of London prepares for a thinning of the ranks, with thousands of jobs expected to go. After a bumper year in 2022, teams working on mergers and takeovers are particularly at risk in the coming 12 months as interest rates rise, increasing the cost of borrowing the cash needed to fund new deals.

Goldman chief executive, David Solomon, said the partnership was bracing for slower economic growth as central banks raise interest rates.

Solomon said: “We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” The Guardian reported.

Investment banks had enjoyed a boom year in 2021, as companies launched a huge wave of mergers and acquisitions after coronavirus pandemic lockdowns.

Goldman Sachs and other banks expanded to take advantage, but the number of lucrative deals fell back in 2022 amid rising interest rates around the world.

“There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon said in the message.

“For our leadership team, the focus is on preparing the firm to weather these headwinds.”

Goldman is still forecast to report big profits for this year and next.

Analysts surveyed by S&P Global Market Intelligence predict it will make $12 billion in net profits for 2022, and $13 billion in 2023, The Guardian reported.

That would be bigger than any year since the global financial crisis in 2009, barring its record profits of $21 billion in 2021.

However, the bank has been under pressure to improve its stock market valuation, which is lower relative to some US investment bank rivals such as Morgan Stanley.

Its share price has fallen by 14 per cent during 2022, The Guardian reported.

ALSO READ: Supply issues upset global tech stocks

The company announced personal loans, especially for debt consolidation, as one of its first consumer products in 2016…reports Asian Lite News

Global investment bank Goldman Sachs is reportedly planning to lay off hundreds of employees at its consumer business.

The company’s decision to cut jobs comes after chief executive David Solomon announced plans to curtail “Main Street” banking ambitions, reports The Financial Times.

According to people familiar with the matter, the banking major is also planning to stop offering personal loans through its Marcus-branded retail banking platform.

The company announced personal loans, especially for debt consolidation, as one of its first consumer products in 2016.

Solomon announced in October that Goldman will significantly reduce its retail banking unit after years of losses and rising costs, according to the report.

However, its Marcus division will still accept retail deposits, which offer a relatively cheap source of funding for the bank.

The report said that these layoffs will be in addition to the annual cull of underperforming employees that the banking firm typically conducts each year.

Moreover, Goldman is also gearing up for a potential recession in 2023.

Solomon said Goldman had “set in motion certain expense mitigation plans, but it will take some time to realise the benefits”.

Bloomberg, which earlier reported the potential cuts, said it could affect as many as 400 positions, the report added.

However, Goldman, which employs over 49,000 people worldwide, declined to comment.

Earlier this month, Global investment advisory firm Morgan Stanley cut about 2 per cent of its global workforce, or about 1,600 employees, amid the global economic meltdown.

The company has about 81,567 employees.

ALSO READ: Google CEO won’t rule out massive layoffs

Goldman Sachs declined to comment, but had mentioned reduced profits in an earning report in July….reports Asian Lite News

Banking major Goldman Sachs is expected to layoff hundreds of workers, local media reported.

The cuts at the financial investment firm could begin as early as next week and impact employees across the company, BBC reported.

Goldman Sachs declined to comment, but had mentioned reduced profits in an earning report in July.

“We have made the decision to slow hiring velocity,” the company’s chief financial officer, Denis Coleman, had said at the time, BBC reported.

The investment bank had warned it might have to cut expenses as the economic outlook worsens.

It reported a 48 per cent slump in its second quarter profit as its clients face inflation, rising interest rates, the Coronavirus pandemic and war in Ukraine.

Its investment banking division generated revenues of $2.1 billion, down 41 per cent compared to a year ago.

Coleman also said the firm is considering, “reinstating our annual performance review of our employee base at the end of the year, something that we suspended during the period of the pandemic for the most part and just being much more disciplined and focused on utilisation efficiency of our human capital resources”.

“There is no question that the market environment has gotten more complicated and a combination of macroeconomic conditions and geopolitics is having a material impact on asset prices, market activity and confidence,” according Goldman Sachs Chief Executive David Solomon, BBC reported.

ALSO READ: India tries hard to bridge trade deficit amid challenges