Goldman Sachs Preparing for Layoffs as Soon as Next Week

By Sam Boughedda 

According to The New York Times on Monday, Goldman Sachs (NYSE:) is readying for a round of layoffs as soon as next week.

Citing two people familiar with the matter, the NYT said the layoffs will impact employees across various sections of the company. Bloomberg later reported the company will eliminate several hundred roles beginning this month.

Goldman generally evaluates its headcount every year and lets go of employees based on performance. However, it halted that program during the pandemic. At the same time, it was experiencing a record period for deal-making, with bankers complaining of overwork.

The total number is said to be less than some previous rounds. The reviews are used as an opportunity for the company to cut its worst-performing staff, but there is an expectation that the company could reduce the pace of replacing the staff it loses.

According to Bloomberg data, analysts anticipate the bank to report a decline of over 40% in earnings this year. In July, Goldman Sachs said it intended to slow hiring and reinstate its annual performance reviews in an attempt to reduce expenditure in a challenging environment.