Goldman Sachs layoffs will now be next in line hitting workers. Days after Morgan Stanley layoffs affected many, now Goldman Sachs is reportedly planning to axe hundreds of jobs at its consumer business. The decision to cut jobs at Goldman Sachs comes after the Chief Executive David Solomon unveiled plans to scale back its “Main Street” banking ambitions, as per a report.
According to Financial Times, Goldman Sachs layoffs are expected to be followed by other decisions by the company. It adds that the company is also planning to stop offering personal loans through its Marcus-branded retail banking platform. These loans were among the first consumer products that hit the market by Goldman.
However, it must be noted that as per the report, these layoffs at Goldman Sachs will be in addition to the annual cull of underperforming employees. The latter exercise is conducted almost every year and this time, since there are additional layoffs, the company is yet to decide on the exact number of jobs to be axed.
In previous media reports, Bloomberg reported that Goldman Sachs layoffs could affect as many as 400 positions. However, as mentioned before, the exact number will be known later.
The primary reason for layoffs at Goldman Sachs, as per several media reports, is the dramatic slowdown in investment banking activity. Since the world economy is being impacted and headed towards a potential recession, even Goldman is preparing itself for the same.
In October, as per FT, Goldman Sachs announced restructuring as well. Under this, its consumer division will be split into two, with Marcus sitting in the broader wealth management business and rest of retail banking operations becoming a part of Goldman’s new ‘Platform Solutions’ unit, the report adds.