Goldman Sachs could cut 3,200 jobs

US bank Goldman Sachs plans to cut 3,200 jobs, fewer than initially stated, and the announcement could come as early as this week, a source familiar with the matter said on Sunday, confirming press reports.

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Goldman Sachs declined to comment when contacted by AFP.

A source familiar with the matter, however, reported as many as 3,200 layoffs, to be announced this week. But their total number may be a little less.

“We’re going to have to downsize a little bit,” Goldman Sachs Chief Executive David Solomon said at a Wall Street Journal conference in early December.

In mid-December, initial press reports reported 4,000 layoffs, or just over 8% of the bank’s 49,100.

A person familiar with the matter confirmed that the establishment is “probably a little bit more” than what it normally practices, which separates “1 to 5%” of staff each year.

The source reported the decision was made “in view of the current financial situation”, which is deteriorating, and as the bank embarks on a massive recruitment drive from 2019, leading to a 28% increase in its workforce.

Other Wall Street investment banks have also taken the plunge recently. According to several American media, Morgan Stanley is currently laying off about 2% of its workforce, or about 1,600 people.

Goldman Sachs saw its net profit fall 44% in the third quarter, driven by a collapse in its investment bankers’ operations, but better-than-expected results from its brokerage operations.