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Goldman (GS) to Commence Second Round of Layoffs This Year
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With the resumption of job cuts by a number of top companies after being on hold amid the coronavirus pandemic, Goldman Sachs (GS - Free Report) has come up with a number of layoffs, marking the second round in less than three months, per Bloomberg.
Per the source, the bank’s latest round of layoffs will include hundreds of job cuts which would equate to less than 1% of its workforce. Also, the retrenchment will occur across various divisions and office locations, rather than being concentrated within specific teams.
Prior to the second wave of cuts, Goldman laid off around 400 employees this September, though the resumption of the same was doubtful before 2021 amid the pandemic-induced economic slowdown, resulting in a surge in unemployment rates.
"At the outbreak of the pandemic, the firm announced that it would suspend any job reductions. The firm has made a decision to move forward with a modest number of layoffs," a spokesperson for Goldman had told Business Insider at the time.
Notably, these layoffs form part of the $1.3-billion run-rate expense savings in three years announced on Investors Day held in January. At the time, the investment banking giant had also unveiled plans to undertake reshuffling of the business units and a number of changes in management.
Goldman has put this plan in motion as well. Per the plan, the merchant banking and asset management businesses are likely to be merged into a single segment. Eric Lane and Julian Salisbury will head the new unit.
Part of the bank’s cost-control measures also includes shifting people and businesses from expensive cities such as New York to cheaper locations, which would aid in cost savings, per chief financial officer Stephen Scherr announced earlier this month at a virtual conference.
Goldman has been focused on digitizing the bank’s operations and building consumer lending operations for quite some time now. In 2016, it launched an online bank — Marcus by Goldman — which has been delivering impressive results. While the bank is on track to remodel its business into a more profitable organization, it continues to face several legal investigations, which might keep costs elevated.
Among others, Citigroup (C - Free Report) , Wells Fargo (WFC - Free Report) and JPMorgan (JPM - Free Report) have executed their targeted reductions. However, Bank of America (BAC) chief executive officer Brian Moynihan remains firm on its no-layoff pledge for 2020.
Overall, per Bloomberg’s data, globally, more than 30 banks have planned workforce reductions of about 68,000. This includes HSBC Holdings’ plan to cut jobs by 35,000 for trimming $4.5 billion of costs at the underperforming units in the United States and Europe, announced this February.
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Goldman (GS) to Commence Second Round of Layoffs This Year
With the resumption of job cuts by a number of top companies after being on hold amid the coronavirus pandemic, Goldman Sachs (GS - Free Report) has come up with a number of layoffs, marking the second round in less than three months, per Bloomberg.
Per the source, the bank’s latest round of layoffs will include hundreds of job cuts which would equate to less than 1% of its workforce. Also, the retrenchment will occur across various divisions and office locations, rather than being concentrated within specific teams.
Prior to the second wave of cuts, Goldman laid off around 400 employees this September, though the resumption of the same was doubtful before 2021 amid the pandemic-induced economic slowdown, resulting in a surge in unemployment rates.
"At the outbreak of the pandemic, the firm announced that it would suspend any job reductions. The firm has made a decision to move forward with a modest number of layoffs," a spokesperson for Goldman had told Business Insider at the time.
Notably, these layoffs form part of the $1.3-billion run-rate expense savings in three years announced on Investors Day held in January. At the time, the investment banking giant had also unveiled plans to undertake reshuffling of the business units and a number of changes in management.
Goldman has put this plan in motion as well. Per the plan, the merchant banking and asset management businesses are likely to be merged into a single segment. Eric Lane and Julian Salisbury will head the new unit.
Part of the bank’s cost-control measures also includes shifting people and businesses from expensive cities such as New York to cheaper locations, which would aid in cost savings, per chief financial officer Stephen Scherr announced earlier this month at a virtual conference.
Goldman has been focused on digitizing the bank’s operations and building consumer lending operations for quite some time now. In 2016, it launched an online bank — Marcus by Goldman — which has been delivering impressive results. While the bank is on track to remodel its business into a more profitable organization, it continues to face several legal investigations, which might keep costs elevated.
Shares of this Zacks Rank #3 (Hold) stock have gained 22.3% over the past six months compared with the 34.9% rally of the industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks’ Moves
Among others, Citigroup (C - Free Report) , Wells Fargo (WFC - Free Report) and JPMorgan (JPM - Free Report) have executed their targeted reductions. However, Bank of America (BAC) chief executive officer Brian Moynihan remains firm on its no-layoff pledge for 2020.
Overall, per Bloomberg’s data, globally, more than 30 banks have planned workforce reductions of about 68,000. This includes HSBC Holdings’ plan to cut jobs by 35,000 for trimming $4.5 billion of costs at the underperforming units in the United States and Europe, announced this February.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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