News: Goldman Sachs plans global layoffs, targeting 125 managing directors

Strategic HR

Goldman Sachs plans global layoffs, targeting 125 managing directors

Currently, within the group of managing directors subject to layoffs at Goldman Sachs, there are individuals employed in the investment banking division. The layoff process is currently in progress.
Goldman Sachs plans global layoffs, targeting 125 managing directors

Goldman Sachs, the US banking behemoth, is planning to reduce its headcount by approximately 125 managing directors worldwide. The move is aimed at streamlining operations and reducing costs as the company faces a slowdown in deal activity.

Bloomberg's sources have revealed that among the managing directors facing layoffs at Goldman Sachs, some are employed in the investment banking division. The process of layoffs is presently underway. 

The reductions in staff coincide with a decline of over 40% in deal values, which currently stand at $1.2 trillion for the year. In January, Goldman Sachs implemented a significant cost-cutting initiative that involved laying off more than 3,000 employees, equivalent to approximately 6.5% of its overall headcount.

Prior to that, a Reuters report unveiled that Goldman Sachs Group had implemented a reduction of over 30 banking positions in Asia. This step was taken in response to a demanding market environment that exerted pressure on dealmaking and trading revenues for Wall Street banks.

Two additional sources have confirmed that the job cuts had a significant impact on bankers focused on China. Among those affected were nine equities capital markets bankers, including a managing director, who were based in Beijing and Hong Kong.

The recent job cuts in Asia, which affected fewer than 250 positions, were part of Goldman Sachs' broader global restructuring initiatives. This information was disclosed by a fifth individual who is familiar with the situation.

In response to a decrease in dealmaking, Wall Street banks have been carrying out workforce reductions since late last year, as these circumstances have adversely affected their revenues.

In a report released by Reuters last month, it was revealed that Morgan Stanley, a competitor of Goldman Sachs, disclosed its plans to reduce its workforce by around 3,000 jobs in the second quarter. This marks the second round of layoffs for Morgan Stanley within a span of six months.

In Asia, Citigroup has recently initiated a reduction of more than 20 positions, primarily targeting junior roles. When approached for comment, Citigroup declined to issue a statement.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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