New Delhi: Goldman Sachs has joined its rival Morgan Stanley in sacking hundreds of employees as it gears up for an uncertain year ahead. The Wall Street titan is planning to cut at least 400 jobs as it looks at restructuring its struggling consumer business.
The New York-based investment bank is making plans to issue pink slips to about 400 employees from its loss-making retail banking operations. Chief Executive Officer David Solomon recently said that he’s dialing back the firm’s ambitions for consumer banking, according to a Bloomberg report.
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Goldman Sachs’ layoffs come just a few days after Morgan Stanley gave pink slips to 2 per cent of its global workforce in a move that would affect about 1,600 employees. The layoffs hit Morgan Stanley’s 82,000-employee strong workforce across all divisions.
Job cuts at Goldman Sachs show that the global bank is taking a step beyond its yearly exercise of removing underperforming staff, which was the focus just months ago. CEO Soloman recently indicated that he’s also reviewing other business lines to manage headcount and limit costs.
“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 realise the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set,” Solomon said at a conference last week.
The plans for the layoffs are still being finalised, Bloomberg quoted one of the people as saying
Morgan Stanley layoffs
Meanwhile, Last week, it was reported that global investment bank Morgan Stanley has laid off employees as part of cost-cutting measures and restructuring plans. The bank issued pink slips to 1,600 employees, 2 per cent of its 82,000-strong global workforce.
Morgan Stanley, like other investment banks, had hit a pause on layoffs during the pandemic.
