Goldman Sachs is expected to lay off around 3,200 workers beginning Wednesday in a massive bloodbath that bankers at the firm are calling “David’s Demolition Day,” the Post has learned.
News of the firings of hard-line CEO David Solomon broke at the Wall Street giant’s downtown Manhattan headquarters on Friday after a partner in its wealth management division overheard a colleague that the culling would begin the following week, said sources.
The layoffs – apart from an earlier report that predicted up to 4,000 casualties – are nonetheless the most significant since Goldman sorted out its ranks in the wake of the 2008 financial crisis. The bank is scrambling to offset falling investment banking revenues after a sharp drop in mergers driven by so-called “blank check” firms.
The layoffs also follow a massive hiring wave under Solomon to meet pandemic-era demand for such deals, which has added more than 10,000 employees since he took the helm in 2018. As of Sept. 30, Goldman had more than 49,000 filings worldwide, according to Finance.
Goldman Sachs layoffs are referred to as “David’s Demolition Day”. AFP via Getty Images
According to a Bloomberg report, at least 1,000 casualties will hit the company’s core businesses, such as banking and retail. While trading revenue is expected to increase by 22% for 2022, bank fees have fallen by more than 50%, according to the report. Hundreds more layoffs are expected at Goldman’s struggling consumer banking division, which the company said shrank in October and admitted it never made any money.
The layoffs will not affect the roughly 3,000 new analysts who will take up their new roles in the summer of 2023, sources said.
Goldmanites have been nervous since Solomon revealed plans to lay off another round of workers in the “first half of January”.
“There are a variety of factors affecting the business landscape, including tightening monetary conditions, which are slowing economic activity,” Solomon said in a voice note sent to employees in late December. “We have to proceed with caution and use our resources wisely.”
A Goldman representative declined to comment.
Goldman Sachs layoffs are referred to as “David’s Demolition Day”. Getty Images
At least 1,000 casualties will hit the company’s core businesses, such as banking and commerce, Portal
The job cuts come ahead of Goldman’s annual bonuses, which are usually paid out later in January and are expected to fall by about 40%, according to Portal. The bank resumed its annual performance review process and downsizing in September after a two-year hiatus during the pandemic.
The Wall Street giant typically lays off about 1% to 5% of its employees each year. These new cuts come on top of previous layoffs.
As reported by The Post, Goldman snatched up a complimentary coffee that workers enjoyed each morning in the “Sky Lobby” on the 11th floor of its headquarters at 200 West. St. On Friday, a barista who delivered free coffee to workers outside the building said bankers were “really disappointed” with the coffee situation despite fears for their jobs.
Goldman shares rose 1.4% to $353.