Goldman Sachs CEO says layoffs coming in January: report
Goldman could cut as many as 4,000 jobs in the next few weeks, a person familiar said
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Goldman Sachs plans to cut as many as 4,000 jobs in the new year, a person familiar tells FOX Business.
The confirmation of job cuts follows a report by Bloomberg that CEO David Solomon warned in his end-of-the-year message to employees that the world's second-largest investment bank will be trimming its workforce in the first few weeks of the year and the layoffs could be in the thousands.
Goldman declined to comment on the report.
Attendees watch David Solomon, CEO of Goldman Sachs & Co., on a screen as he speaks during a panel session at the Future Investment Initiative conference in Riyadh, Saudi Arabia, on Oct. 25, 2022. (Tasneem Alsultan/Bloomberg via Getty Images / Getty Images)
"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," Solomon said, according to Bloomberg.
"There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity," the CEO reportedly explained. "For our leadership team, the focus is on preparing the firm to weather these headwinds."
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Goldman Sachs laid off 500 employees in September as the financial sector continued to take a battering due the economic downturn. (Ramin Talaie/Bloomberg via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 420.04 | -3.00 | -0.71% |
Goldman already laid off 500 employees in September as the financial sector continued to take a battering due the economic downturn, and the Financial Times reported a few weeks ago that Solomon was considering slashing bonuses by at least 40% for roughly 3,000 investment bankers.
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Solomon hinted earlier this month that further cuts could be on the horizon as he offered a gloomy outlook for the health of the economy in 2023.
Solomon sees "bumpy times ahead" for the global economy, meaning compensation will decline from last year's levels. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
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"You have to assume that we have some bumpy times ahead," Solomon said during an interview on Bloomberg Television. "You have to be a little more cautious with your financial resources, with your sizing and footprint of the organization."
He added, "That might also come from pruning in certain areas."
FOX Business' Megan Henney contributed to this report.