February 8, 2023

Unitranche

Supportive Business Potential

Goldman Sachs CEO says job cuts to come within weeks

David Solomon, the CEO of U.S.-based investment bank and financial services company Goldman Sachs, said in a staff memo that the latest round of jobs is expected to come within weeks. 

In an end-of-the-year staff memo obtained by Bloomberg News, Solomon, who has been chairman of the bank since 2019, told staff that the first rounds of layoffs will happen in January, noting the layoffs are happening due to slow economic conditions.  

“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 wrote in the memo. 

 “There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity. For our leadership team, the focus is on preparing the firm to weather these headwinds.”

Sources told Bloomberg News that up to 4,000 jobs, equating to eight percent of its workforce, will be eliminated from the company to contain the loss in profit and revenue. 

Sources also told the news outlet that company managers would be asked to identify potential 

Cost-reduction targets, noting that a final job-cut number hasn’t been determined yet. 

“We need to proceed with caution and manage our resources wisely,” Solomon wrote in his yearly end memo. 

A workforce reduction from Goldman Sachs would follow other major U.S. companies such as Amazon, Twitter, Meta, Lyft, and Salesforce who have announced layoffs within their workforce in the past year.