January 28, 2023

Goldman Sachs has started cutting 3,200 jobs and laying off employees in its offices in New York, London and Hong Kong in just 30 minutes.

When the mass layoffs began on Wednesday, many workers were laid off without even receiving a bonus for their work in 2022, the Financial times reports.

The employees were reportedly suspended from meetings and phone calls, with their office badges deactivated as they were escorted out of the buildings. The company will also send personal items to the laid-off employees who were out of the office.

The investment banking giant is poised to lay off about 6.5 percent of its 49,000 workforce as CEO David Solomon looks to cut costs amid declining revenues.

“We know this is a difficult time for people leaving the company,” Goldman Sachs said in a statement. “We are grateful for the contributions of all our people and we are providing support to ease their transition.

“Our focus now is to make the company fit for the opportunities ahead in a challenging macroeconomic environment.”

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

Goldman Sachs' workforce rose to 49,100 last year.  Even if the company lays off 3,200, it will still have more employees than in 2021

Goldman Sachs' workforce rose to 49,100 last year.  Even if the company lays off 3,200, it will still have more employees than in 2021

Goldman Sachs’ workforce rose to 49,100 last year. Even if the company lays off 3,200, it will still have more employees than in 2021

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

Sources told the Times that while bonuses have been withheld, many of the senior executives fired will continue to be paid until the end of January, after which they will receive three months’ severance pay.

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

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

About a third of the layoffs came from the Investment Banking and Global Markets division, and some of the laid-off workers also relied on the job for their visas.

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

“I just want to share how quickly life can be turned upside down,” she wrote on LinkedIn. ‘I am proud to be the first person in my family to do a master’s degree abroad.

“I come from a rural family, so it’s been a rollercoaster of a journey, overcoming social and financial constraints to get here. Knowing where I started, getting fired hurts.’

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

1673537701 203 Goldman Sachs cut 3200 jobs giving some workers just 30

1673537701 203 Goldman Sachs cut 3200 jobs giving some workers just 30

1673537701 328 Goldman Sachs cut 3200 jobs giving some workers just 30

1673537701 328 Goldman Sachs cut 3200 jobs giving some workers just 30

1673537702 930 Goldman Sachs cut 3200 jobs giving some workers just 30

1673537702 930 Goldman Sachs cut 3200 jobs giving some workers just 30

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

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

Many of the canned workers 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 had been laid off, writing, “My current employer Goldman Sachs has laid off my entire team (some of the best people I have worked with) and ditched the project. Puts me in great danger.’

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Claire Davis, a former member of the banks’ product management department, said morale may be low for the laypeople flooding LinkedIn.

“To my fellow Goldman Sachs people affected, I am with you,” she wrote. “I’d love to help you review resumes, make a call, or grab a cup of coffee.”

The layoffs at Goldman began in Asia on Wednesday, as the company completed the winding down of its private wealth management business.

It eventually laid off 16 private banking employees at its offices in Hong Kong, Singapore and China, an expert source said.

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

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

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

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

The UK also saw employees leave the London office (above) to comfort each other in local pubs

The UK also saw employees leave the London office (above) to comfort each other in local pubs

The UK also saw employees leave the London office (above) to comfort each other in local pubs

In central London’s Goldman, rainfall reduced the prospect of staff build-ups.

Several security guards actively patrolled the entrance to the building, but few people entered or left the premises.

A glimpse of the bank’s recreation area, just beyond the lobby, showed a handful of staffers engaged in deep conversation, but little sign of drama.

However, the Harrild & Sons pub near the bank’s Plumtree Court office saw some of the dismissed employees gather to comfort each other.

In New York, workers poured into headquarters during the morning rush hour.

Goldman Sachs shares fell sharply on Wednesday after reports of the layoffs

Goldman Sachs shares fell sharply on Wednesday after reports of the layoffs

Goldman Sachs shares fell sharply on Wednesday after reports of the layoffs

Last month, CEO Solomon reportedly sent a memo to staff before the end of the year, warning that headcount would be cut in the new year.

“We are conducting a careful review and while discussions are ongoing, we expect our headcount reduction to take place in the first half of January,” Solomon said in the memo. Bloomberg.

Several factors are influencing the business landscape, including tightening monetary conditions slowing economic activity. For our leadership team, the focus is on preparing the company to weather these headwinds,” he added.

Goldman Sachs had significantly expanded its workforce since 2020 as it looked for growth opportunities after the pandemic.

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

The annual bonus season kicks off this week as JP Morgan, Citi and Bank of America all report their past year’s results.