Goldman Sachs plans to lay off more than 1,300 employees from its global workforce as part of an annual review process to cull low performers. The Wall Street Journal reported the firings on Friday, citing a source close to the matter.
The $2.8 trillion asset manager will likely cut between 3% and 4% of its workforce, the sources told the WSJ. That would affect between 1,300 and 1,800 people. Goldman Sachs employed about 45,300 people as of late last year. The cuts are expected across the bank’s various divisions, with some teams impacted more than others.
Goldman Sachs has committed similar yearly layoffs before. The process is part of an annual review known at the bank as a “strategic resource assessment,” or SRA. Typically, the bank aims to trim between 2% and 7% of its workforce each year based on various performance factors. That range has fluctuated over the years based on market conditions and Goldman’s financial outlook. Furthermore, the sources added that the layoffs are ongoing, and will continue in the fall, perhaps indicating more employees being fired in the coming month.
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“Our annual talent reviews are normal, standard, and customary, but otherwise unremarkable,” said Tony Fratto, a Goldman Sachs spokesman. The spokesman also said that the overall headcount at Goldman is expected to be higher at the end of 2024 compared to 2023.
Other major asset management banks, including Citi and JPMorgan, execute similar layoffs around this period as well. Last month, Goldman Sachs posted a 21% increase in investment-banking revenue in the second quarter compared to a year ago. The bank also booked a 27% revenue jump in its asset- and wealth-management business.