ALBAWABA - Goldman Sachs is planning to lay off fewer than 250 employees in the coming weeks, amidst the slowdown in the deal-making market, which has negatively impacted banking and investment services.
The upcoming wave of layoffs will include partners and several managing directors. Goldman Sachs had approximately 4,500 employees as of the end of March.
This move follows the bank's reduction of around 3,200 employees in the first quarter of this year, marking the largest layoff wave since the global financial crisis in 2008. Additionally, nearly 500 jobs were cut last year. In February, Goldman Sachs' CFO, Denis Coleman, indicated that the bank aims to improve its efficiency ratio by reducing the number of employees through not replacing those who leave, along with cutting other expenses. The bank's plans included a $600 million reduction in salaries. Goldman Sachs had set a medium-term efficiency ratio target of 60%, compared to 68.7% at the end of March.
Investment banks have been impacted by a decline in merger and acquisition deals following the Federal Reserve's raising of interest rates to curb inflation, along with the economic uncertainty resulting from the Russo-Ukrainian conflict.
