Goldman Sachs Group Inc. is planning its annual cut of underperforming workers beginning later next month, a person familiar with the matter said.
(Bloomberg) — Goldman Sachs Group Inc. is planning its annual cut of underperforming workers beginning later next month, a person familiar with the matter said.
Reductions this year will be at the lower end of the bank’s usual range of 1% to 5% of its workforce, the person said, asking not to be identified discussing non-public information. The reductions will take place from late October to early November, the person said.
Goldman had a headcount of 48,500 as of December, with 52% based in the Americas, 19% in EMEA and 29% in Asia, according to its annual report. It spent $15.1 billion on compensation and benefits last year.
Chief Executive Officer David Solomon reminded investors on an earnings call in July that the bank, which halted firings in the pandemic, had resumed its regular performance-based process and would conduct it again in late 2023. The review paves the way for executives to make compensation decisions at the end of the year.
A Goldman Sachs spokesperson declined to comment.
The Financial Times previously reported Goldman’s job-cut plan.
Goldman managers have started drafting lists of those who may be cut, the FT said. The final numbers are still being set.
Back in January, the bank had embarked on one of its biggest round of job cuts ever, when it moved to eliminate about 3,200 positions. That came amid a re-examining of costs by executives across the industry with a rebound in dealmaking taking longer than expected to materialize.
–With assistance from Ambereen Choudhury, Steven Arons and David Scheer.
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