Goldman Sachs is expected to lay off more than 1,300 people, affecting 3-4% of its total workforce

According to The Wall Street Journal, Goldman Sachs plans to cut 1,300-1,800 jobs globally during its annual review process, eliminating underperformers, which is expected to affect 3-4% of its total workforce. This round of layoffs is expected to span across various departments, with some teams facing greater impacts. The layoffs have already begun and will continue into the fall.

As of the end of last year, Goldman Sachs had approximately 45,300 employees in total. Typically, Goldman Sachs reduces its workforce by 2%-7% annually based on various performance factors, with the specific percentage fluctuating depending on market conditions and the company's financial outlook.

Goldman Sachs spokesperson Tony Fratto stated:

Our annual talent assessment is normal, standard, and customary, with no particular significance. It is expected that Goldman Sachs' overall headcount will be higher by the end of 2024 compared to 2023.

Goldman Sachs paused its layoff plans during the pandemic but resumed in 2022, with only a few hundred job cuts in September of that year, at the lower end of its historical range. In January 2023, Goldman Sachs cut around 3,200 positions, accounting for approximately 6% of its total workforce, and conducted more layoffs later that year.

Goldman Sachs' annual elimination process evaluates performance based on multiple factors, with one increasingly relevant factor being attendance at the office. During and after the pandemic, Goldman Sachs and its Wall Street peers relaxed requirements for employees to work in the office, but later began cracking down on those not coming into the office.

In recent months, the outlook for interest rates in the United States has become more stable, bringing hope to employees across Wall Street, with expectations that trading activities are poised to recover from years of sluggishness. However, new headwinds have emerged due to the slowing U.S. economy and the presidential election.

Prior to this round of layoffs at Goldman Sachs, some employees faced meager bonuses due to their lower participation in trading activities in 2023