According to sources, Goldman Sachs plans to let go of hundreds of employees.
The financial investment firm’s employees could be affected by the cuts starting as soon as next week, according to sources.
Although it declined to comment, Goldman Sachs had mentioned lower profitability in a July quarterly report.
Denis Coleman, the company’s chief financial officer, had stated at the time, “We have decided to limit hiring velocity.”
The investment bank had forewarned that as the economy’s prospects deteriorated, it might need to slash costs.
As its clients deal with inflation, rising interest rates, the coronavirus pandemic, and the Ukrainian crisis, it reported a 48% decline in second-quarter profit. Revenues from its investment banking division were $2.1 billion, a 41% decrease from the prior year.
According to a source who spoke to Reuters, the Wall Street giant typically fires 1% to 5% of its underperforming employees each year, and the layoffs in 2022 will likely fall within that range.
