Goldman Sachs is planning to lay off at least 1,300 employees as part of its annual performance review. The number of layoffs may even increase to 1,800 by the end of the process. The bank’s current workforce may be reduced by three to four percent, but it will not affect the bank’s hiring plans, as the team size is expected to increase by the end of the year. The layoffs will impact several divisions of the bank.
These job cuts are not uncommon at Goldman Sachs, as it is usual for the bank to let go of at least two percent of its workforce, sometimes even up to seven percent if employees are found to be underperforming during the annual performance review. Last year, the bank reduced its headcount by six percent after the performance review process, and there was another round of cuts a few months later. In the first quarter, the bank reduced its workforce by around 3,200 employees, marking its most extensive round of layoffs since the 2008 financial crisis. In addition, approximately 250 positions were eliminated in May.
During the pandemic, the company suspended its performance-based job cuts. However, once conditions returned to normal, it resumed its usual practice.
