Goldman Sachs, under the leadership of CEO David Solomon, is set to lay off between 3% and 5% of its global workforce. This decision, which affects over 1,395 employees from a total of 46,500, includes numerous under-performing vice presidents and is part of the firm’s routine annual talent review process. The Wall Street giant emphasized that these cuts are standard and that overall headcount will remain stable due to planned new hires later this year. A Goldman spokesperson stated, “Like other banks, this is part of our normal, annual talent management process. We don’t comment on the specifics in any given year.” According to reports, employees facing layoffs received either poor annual reviews or smaller-than-expected bonuses, signaling an implicit suggestion to seek opportunities elsewhere.
The move comes as Solomon seeks to refocus the bank on its core investment banking and asset management activities after a mixed experience in consumer banking. Additionally, the firm is navigating potential legal challenges related to diversity, equity, and inclusion policies amid threats of lawsuits from the Trump administration’s Department of Justice. Last week, Solomon appointed his long-time confidante, Chief Operating Officer John Waldron, to the bank’s board of directors, a decision viewed as part of succession planning. Both executives received $80 million in “golden handcuffs” bonuses, set to fully vest by 2030.
These developments follow Goldman’s announcement in January that its profits surged to $14 billion in 2024, up from $8.5 billion the previous year. During the earnings call, Solomon hinted at potential efficiency measures, acknowledging uncertainties surrounding Trump’s immigration, trade, and tax policies. Speaking in Sydney, Australia, Solomon noted that tariffs imposed on Canada, China, and Mexico aim to “level the playing field aggressively.” Despite challenges, Goldman’s stock price has risen significantly over the past year, peaking at 672.19 on February 18 before closing at 581.14 on Tuesday.
— news from New York Post