By Manya Saini
(Reuters) -Goldman Sachs plans to cut several hundred jobs as part of an annual review process targeting underperforming companies, a person familiar with the matter told Reuters on Friday.
The investment bank has reinstated performance-related job cuts in 2022 after a two-year hiatus due to the COVID-19 pandemic.
“Our annual talent reviews are normal, standard and customary, but otherwise unremarkable,” a Goldman spokesperson said in a statement to Reuters. “We expect more people to work at Goldman Sachs in 2024 than in 2023.”
Last year, this exercise reportedly resulted in 1% to 5% of Goldman employees losing their jobs. Over the years, the cuts made as part of Goldman’s strategic review of resources have fluctuated based on market conditions and financial prospects.
The bank’s global workforce stood at 44,300 employees as of the quarter ended June 30. Multiple rounds of workforce cuts were necessary in 2023 as dealmaking suffered and extended interest rates weighed on the macroeconomic outlook.
The operating environment for the banks has improved since then. Goldman reported second-quarter profits that more than doubled in July on strong credit underwriting and fixed-income trading.
The resilience of the U.S. economy has given business leaders the confidence to pursue deals, debt sales and equity offerings. But despite an industry-wide recovery, dealmaking activity has remained below historical averages.
Goldman shares turned positive in afternoon trading, closing 0.6% higher. The stock is up 32% this year, outperforming the broader markets as well as an index that tracks rival large-cap banks.
Earlier in the day, a Wall Street Journal report said layoffs that have already begun will continue through the fall and could affect more than 1,300 employees, or 3% to 4% of the workforce.
However, Goldman said in its statement to Reuters that the figures reported by the Journal were not accurate.
