Goldman Sachs Prepares for Layoffs as Deal-Making Slows

Goldman Sachs is preparing for a round of layoffs that could come as soon as next week, according to two people familiar with the plans, who spoke on condition of anonymity because they were not authorized to speak publicly.

The job cuts will affect employees across the company, according to the people.

Goldman typically revisits its head count every year, letting go of employees based on performance and to match the bank’s needs. It had paused that program during the pandemic, which also coincided with a record period for deal-making, when bankers complained of overwork. The program typically lays off 1 to 5 percent of workers; this round of layoffs is likely to be at the lower end of that range, a person familiar with the matter said.

Goldman’s chief financial officer, Denis Coleman, told analysts in July that the bank was “probably reinstating our annual performance review of our employee base at the end of the year.”

The move comes as the Federal Reserve’s effort to tame inflation by raising rates has cooled deal-making and raise concerns that the U.S. economy will tip into recession. The war in Ukraine has added further uncertainty to the mix.

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