Wall Street's major banks continue to lay off employees! Goldman Sachs alone has cut 125 managing directors.
Several Wall Street giants, not just Goldman Sachs, are continuing to lay off employees. Earlier this month, JPMorgan Chase announced that it would lay off about 40 investment bankers, while Citigroup began cutting hundreds of jobs across the company and plans to eliminate 30 investment banking positions and 20 institutional business positions in its London operations.
The wave of layoffs on Wall Street is not over yet, and it is spreading more and more to higher-level employees.
On Friday, June 23, according to sources cited by the media, Goldman Sachs Group has begun to lay off managing directors globally due to continued low trading volumes. On Wall Street, managing directors are usually senior and high-level employees who have been in the industry for many years, have the ability to undertake projects independently, and lead teams.
Sources said that about 125 managing directors at Goldman Sachs will lose their jobs, including some managing directors in investment banking.
These measures are part of the bank's deep cost-cutting measures, and Goldman Sachs has carried out at least three rounds of layoffs in less than a year.
After the first round of impact of the COVID-19 pandemic, the US mergers and acquisitions and IPO markets were unusually active in 2020 and 2021. The big banks on Wall Street not only tried their best to retain talent, but also actively recruited and even poached each other. However, since last year, these transactions have gradually cooled down, and the related income has continued to decline, and the wave of layoffs has also spread to the investment banking departments of the big banks on Wall Street.
The big banks on Wall Street that continue to lay off are not just Goldman Sachs.
According to media reports on Friday, JPMorgan Chase will lay off about 40 investment bankers as part of its efforts to cope with the global economic slowdown. JPMorgan Chase's latest layoffs involve qualifications at all levels. Earlier this week, JPMorgan Chase cut about 20 investment banking positions in Asia, and a previous round of layoffs also affected the region.
JPMorgan Chase CEO Daniel Pinto said last month that the company expects investment banking fees in the second quarter to be 15% lower than the $1.7 billion in the same period last year. Compared with the peak set in the second quarter of 2021, this number has dropped by 54%.
Earlier this month, Citigroup also began to lay off hundreds of people across the company, and planned to cut 30 investment banking positions and 20 institutional business positions in London.
In the past month, several senior Goldman Sachs employees have joined competitors such as Fuguo Bank and Santander Bank.