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Staff at Goldman Sachs have been bracing for news of whether they will keep their jobs on Wednesday, as the US investment bank begins a sweeping cost-cutting drive that could see its 49,000-strong global workforce shrink by thousands.
The long-anticipated job cuts at the Wall Street titan, which are expected to represent the biggest contraction in headcount since the financial crisis, are likely to affect most of the bank’s main divisions, with its investment banking arm under fire facing the deepest cuts, a source said. told Reuters this month.
Just over 3,000 employees will be let go, the source, who could not be named, said on January 9.
The cuts began in Asia on Wednesday, where Goldman is winding down its private wealth management unit and laying off 16 private bank staff in its Hong Kong, Singapore and China offices, sources familiar with the matter said. About eight staff were also laid off in Goldman’s research department in Hong Kong, the sources said, with layoffs continuing in the investment bank and other divisions.
Similar moves were made at the bank’s main office centers in New York or London on Wednesday. The bank also maintains a small presence in Canada, through premises in Toronto’s financial district.
Additional shopping deductions
Goldman’s redundancy plan will be followed by a wider spending review on corporate travel and expenses, the Financial Times reported on Wednesday, as it calculates the cost of a major downturn in corporate dealmaking and a slump in capital market activity since the war in Ukraine.
Goldman Sachs declined to comment.
Goldman had 49,100 employees at the end of the third quarter, after increasing the number of staff significantly during the coronavirus pandemic.
The lender has also cut annual bonus payouts this year to reflect depressed market conditions, with payouts expected to fall by around 40 percent.
Global investment banking costs will almost halve by 2022, with $77 billion going to banks, down from $132.3 billion a year earlier, Dealogic data shows.
Major Wall Street banks processed $517 billion worth of stock trades by the end of December 2022, the lowest level since the early 2000s and a 66 percent drop from the 2021 bonanza, according to Dealogic.
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