Goldman Sachs Group Inc. is set to dismiss a few hundred employees in the coming weeks as part of its annual cull of low-performing staff, according to sources familiar with the matter. These job cuts are part of the bank’s routine effort to manage costs and create opportunities for new talent.
The upcoming layoffs will add to the total workforce reductions in 2024, which have already amounted to approximately 3% to 4% of the bank’s employees, according to one of the sources, who requested anonymity due to the sensitivity of the information. The majority of these reductions were implemented earlier in the year.
This process aligns with Goldman Sachs Group Inc.’s typical approach, which generally involves trimming 1% to 5% of its workforce annually. The practice was briefly paused during the peak of the COVID-19 pandemic and was near the lower end of the range last year.
As of midyear, Goldman Sachs Group Inc. employed 44,300 people. A company spokesperson stated that the bank’s annual review of staff performance is a standard procedure and that the firm anticipates having more employees by the end of 2024 than it did the previous year.
Goldman Sachs Group Inc.’s stock has performed exceptionally well recently, reaching an all-time high this week. The stock price rose more than 32%, surpassing $510 by the close of trading on Friday, making it the best performer among the top U.S. banks. Earlier in the day, The Wall Street Journal reported that Goldman Sachs Group Inc. is proceeding with its annual performance-based layoffs.
