- Sources close to Goldman Sachs told the New York Post that more exits are likely on the horizon.
- This year’s annual bonuses will be so “paltry” that employees will quit of their own accord, company insiders claim.
- The company laid off 3,200 employees on Wednesday for cost reasons.
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After cutting more than 3,000 jobs on Wednesday, Goldman Sachs plans to lay off about 800 more employees in less direct ways, company insiders say.
Another round of employees is expected to quit in the coming weeks after Goldman Sachs handed out annual bonuses, according to sources close to the company who spoke to the New York Post. The forthcoming bonuses are expected to be “so close that disgusted recipients will pack up and leave,” the sources told the Post.
“The expectation is that the following week people will quit,” a source told the Post.
The move would encourage already dejected employees to leave the company without being fired by managers, part of an existing Wall Street strategy to oust employees previously described as “firing by procedure,” a term coined by the media mogul Barry Diller was coined.
A Goldman employee described office morale as “super low” and claimed his colleagues were “very depressed,” according to the New York Post report. The company’s recent layoffs are part of a cost-cutting effort that impacted 3,200 jobs in New York, Dallas, Chicago, Salt Lake City and London.
Some workers were reportedly asked to attend business meetings where they were fired and in some cases given just 30 minutes to leave, according to the New York Post.
A Goldman Sachs spokesperson addressed the layoffs in a statement to Insider: “We know this is a difficult time for people leaving the company. We are grateful for the contributions of all our employees and offer support to ease their transitions. Our focus Now is the time to properly size the company for the opportunities ahead in a challenging macroeconomic environment.”