Goldman Sachs cut 3,200 jobs – giving some workers as little as 30 minutes to pack up

Goldman Sachs cut 3,200 jobs – giving some workers as little as 30 minutes to pack up their desks and leave and firing them without paying a bonus for their work in the past year

  • Goldman Sachs began slashing 3,200 jobs on Wednesday at its offices in New York, London and Hong Kong in a move to cut back on expenses
  • Sources said the employees were axed in short meetings, and their yearly bonuses were withheld in a move to allegedly spur resignations 
  • Many former employees have already taken to LinkedIn to share their shock 
  • It comes as CEO David Solomon warned that the investment giant needed to cut costs after its workforce swelled to 49,100 while revenue shrank 

Goldman Sachs has begun cutting 3,200 jobs, dismissing workers in their New York, London and Hong Kong offices in as little as 30 minutes. 

As the mass layoffs began Wednesday, many employees were booted without even receiving bonuses for their work in 2022, the Financial Times reports. 

The employees were reportedly axed via meetings and phone calls, with their office badges deactivated as they were escorted out of the buildings. The company will also mail personal items to the fired workers who were not in the office.

The investment banking giant is poised to lay off around 6.5 percent of its workforce of 49,000, as CEO David Solomon looks to cut expenses amid shrinking revenue. 

‘We know this is a difficult time for people leaving the firm,’ Goldman Sachs said in a statement. ‘We’re grateful for all our people´s contributions, and we’re providing support to ease their transitions. 

‘Our focus now is to appropriately size the firm for the opportunities ahead of us in a challenging macroeconomic environment.’

Goldman Sachs began cutting 3,200 jobs on Wednesday as CEO David Solomon (pictured) looks to slash expenses as banks reel from a harsh 2022

Goldman Sachs began cutting 3,200 jobs on Wednesday as CEO David Solomon (pictured) looks to slash expenses as banks reel from a harsh 2022

Goldman Sachs workforce ballooned to 49,100 last year. Even if the company sacks 3,200, it will still have more employees than it did in 2021

Goldman Sachs workforce ballooned to 49,100 last year. Even if the company sacks 3,200, it will still have more employees than it did in 2021 

Pictured: Employees in Goldman Sachs New York office on Wednesday as the first round of layoffs began. Employees were reportedly booted in short meetings, and without bonuses

Pictured: Employees in Goldman Sachs New York office on Wednesday as the first round of layoffs began. Employees were reportedly booted in short meetings, and without bonuses 

Sources told the Times that while bonuses were withheld, many of the high-ranking managing directors laid off will still be getting paid until the end of January, and then they’ll receive a three months severance package.

As for the more junior employees, those at the vice-president level and below, were offered only two months severance, the sources said. 

Some Goldman Sachs employees have said that the lack of bonuses this year could be a ploy by the bank to get more workers to resign, allowing them to avoid severance payments while cutting more jobs. 

About a third of those fired came from the investment banking and global markets division, and some of the sacked employees also relied on the job for their visas. 

Shilpi Soni, a former software engineer at the company, said that after being booted from the company, she is desperate to find a new job so she can remain in the US. 

‘Just want to share how quickly life can turn upside down,’ she wrote on LinkedIn. ‘I take pride in being the first person in my family to pursue a Masters in a foreign country. 

‘I come from a rural family so it has been one roller coaster of a journey, overcoming social and financial restrictions to come here. Knowing from where I started, being laid off hurts.’  

Shubham Sahu, 23, said he was canned just after his birthday, writing: ‘Wow, this is truly a different way to start a year..’ 

Many of the canned employees shared their disbelief on LinkedIn, while others noted that their visas were in jeopardy after suddenly losing their jobs

Many of the canned employees shared their disbelief on LinkedIn, while others noted that their visas were in jeopardy after suddenly losing their jobs  

Another software engineer, Raunak Narayan, said his entire team was let go, writing: ‘My current employer Goldman Sachs  has laid off my entire team (some of the best people I’ve worked with) and ditched the project. Putting me in vehement jeopardy.’ 

Claire Davis, a former member of the banks’ product management division, said that morale may be low for the laid employees flooding LinkedIn. 

‘For my fellow Goldman Sachs folks who were impacted, I’m with you,’ she wrote. ‘I’m happy to help review resumes, hop on a call, or grab a cup of coffee.’ 

Goldman’s layoffs began in Asia on Wednesday, where the company completed cutting back its private wealth management business. 

It ultimately let go of 16 private banking staff across its Hong Kong, Singapore and China offices, a source with knowledge of the matter said.

About eight staff were also laid off in Goldman’s research department in Hong Kong, the source added, with layoffs ongoing in the investment banking and other divisions.

The layoffs kicked off in Asia , including at Goldman Sachs its Hong Kong branch (above)

The layoffs kicked off in Asia , including at Goldman Sachs its Hong Kong branch (above)

The UK also saw employees leave its London office (above) to console each other at local pubs

The UK also saw employees leave its London office (above) to console each other at local pubs 

At Goldman’s central London hub, rainfall lessened the prospect of staff huddles.

Several security personnel actively patrolled the building’s entrance, but few people were entering or leaving the property. 

A glimpse into the bank’s recreational area just beyond its lobby showed a handful of staffers in deep conversation but few signs of drama. 

However, at the Harrild & Sons pub near the bank’s Plumtree Court offices saw some of the laid off employees gather as they consoled each other.

In New York, employees were seen streaming into headquarters during the morning rush.

Last year, banks generated nearly $71 billion in U.S. investment banking revenue, according to Dealogic. Investment banking revenue in the United States is expected to have dropped more than 50 percent from last year

Last year, banks generated nearly $71 billion in U.S. investment banking revenue, according to Dealogic. Investment banking revenue in the United States is expected to have dropped more than 50 percent from last year

Goldman Sachs stock took a sharp fall on Wednesday following reports of the layoffs

Goldman Sachs stock took a sharp fall on Wednesday following reports of the layoffs 

Last month, chief executive Solomon reportedly sent a memo to staff for the year end, warning that headcount was set to be reduced in the new year. 

‘We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,’ Solomon said in the memo, according to Bloomberg.

‘There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity. For our leadership team, the focus is on preparing the firm to weather these headwinds,’ he added.

Goldman Sachs had significantly grown its workforce since 2020 as it sought growth opportunities following the pandemic.

However, institutional banks have been struck by a major slowdown in activity in recent months due to volatility in the global financial markets.

Annual bonuses season is due to kick off this week as JP Morgan, Citi and Bank of America all report their results for the past year.

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