Goldman Sachs Announced Significant Layoffs as Economic Uncertainty Grows Stronger
In an annual end-of-year message to staff, Goldman Sachs Group CEO David Solomon said that job cuts are coming for the financial giant in 2023.
Roughly 4,000 jobs, which make up about 8% of the company’s workforce, could potentially be slashed, according to internal sources that were in touch with Bloomberg. Alex Timothy of the Post Millennial noted that these sources requested to remain anonymous.
“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 revealed. “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.”
“We need to proceed with caution and manage our resources wisely,” Solomon continued.
Per internal sources, the company’s leading managers have been tasked with finding any cost-cutting reforms that could be made to cope with a reduction in profit and revenue.
Goldman is projected to rake in $48 billion in revenue for 2022, which represents a decline from 2021. Woke measures to diversify the company and pivot to consumer banking have led to large staffing increases. However, the scaling back of these measures are slashing the firm’s profits, which are projected to be 44% lower than the initial target.
Goldman’s workforces has grown by 34% in the past 4 years, nearly reaching 50,000. The financial giant’s proposed job cuts will allow management to reach profitability goals in 2023.
In 2023, companies such as CNN and Amazon have announced significant job cuts — largely the product of massive economic dislocations brought about by government lockdown policies, growing inflation, and shifting consumer preferences.
Such reductions will become commonplace across the Collective West due to the inflationary and massive regulatory policies that these governments have implemented in the last decades. Such policies make it more difficult to do business, especially for small-and-medium sized enterprises.
Ultimately, governments must start rolling back their regulatory states and pursue more modest monetary policies so that they can foster more stable economic conditions.