Goldman Sachs Begins Cutting 3,200 Jobs in its Largest Layoffs Since the Financial Crisis

Goldman Sachs saw massive drop in profit last year as investment banking activity slowed and asset prices fell.

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon. Jed Jacobsohn/Getty Images

Goldman Sachs (GS) is planning to start laying off up to 3,200 employees, about 7 percent of its workforce, this week, Bloomberg reported today (Jan. 9). It marks the largest job cut at the investment bank since the 2008 financial crisis but is smaller than the previously reported 4,000.

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Goldman’s share price rose 1.3 percent in today’s morning trading.

The layoff will eliminate more than 1,000 positions at Goldman’s core trading and banking units, per Bloomberg, as the bank scales back on its consumer banking business and faces slowing activities in capital markets overall. Goldman Sachs grew its headcount by 34 percent between 2018 and 2022 under CEO David Solomon.

Investment banks across Wall Street saw their profits drop last year as IPOs and merger activities slowed and asset prices plunged. Goldman is expected to log a 46 percent decline in profit on about $48 billion of revenue in 2022, according to analyst estimates. The bank is set to report 2022 earnings on Jan. 17.

Goldman Sachs Begins Cutting 3,200 Jobs in its Largest Layoffs Since the Financial Crisis