Goldman Sachs Plans for Fresh ‘Modest’ Layoffs

Wall Street investment banking giant, Goldman Sachs is preparing for further job cuts months after it decided to trim around 400 positions, Reuters reported on Wednesday.

The exact number of the upcoming job cuts at Goldman Sachs is not known yet. The bank only admitted to going with 'a modest number of layoffs'.

Though the New York-headquartered bank was planning for layoffs for a long time, it earlier halted its plans due to the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic.

In September, the investment bank resumed cuts in the workforce with a similar 'modest number of layoffs'. Though not confirmed, those cuts expectedly did not surpass the previous decided 400 layoffs.

Reducing Operational Costs

The cuts are a part of Goldman Sach’s push to reduce its operational costs. Last January, the investment bank announced its strategic plans to reduce $1.3 billion in its expenses over the next three years.

Apart from the layoffs, the bank is also focusing on other fronts for cost cuts. Earlier this month, Goldman Sachs CTO revealed the investment bank’s plan to transfer more staff to inexpensive locations globally.

Earlier media reports revealed that the bank might go with some significant workforce cuts next year. However, with the upcoming layoffs, it is not clear if the bank will take such harsh steps.

Meanwhile, the Wall Street bank is posting excellent results for the previous consecutive quarters following the impact of the pandemic on global markets. Furthermore, its earnings per share jumped to $9.68 in the third quarter of 2020 from the previous quarter earnings of $6.26.

Similar to Goldman Sach, many other major financial players are cutting their staff, mostly to reduce operating costs. HSBC is cutting 35,000 staff globally, while ING is planning to show the exit to around 1,000 employees.