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The Goldman Sachs Group, Inc. (GS) - free report >>
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The Goldman Sachs Group, Inc. (GS) - free report >>
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Goldman (GS) Eliminating 30 IB Positions in the Asia Region
The Goldman Sachs Group, Inc. (GS - Free Report) is eliminating more than 30 investment banking (IB) positions in the Asia region to survive the current uncertain economic conditions. Per sources familiar with the matter, the primary reason for this decision is the plunge in global dealmaking and trading revenues.
The company's Global Banking & Markets division has witnessed the majority of the regional job cuts. In Asia, China-focused IB professionals who are based in Beijing and Hong Kong were affected the most, with nine equities capital markets bankers being sacked, along with the managing director, per the persons familiar with the matter.
In its new round of layoffs globally, Goldman is likely to cut less than 250 jobs in the coming weeks, including the above-mentioned cuts in Asia. During the first quarter of 2023, GS trimmed its headcount by 3,200, its biggest round of layoffs since the 2008 financial crisis. Last year, the company also cut about 500 jobs.
Over the past six months, shares of GS have declined 2.3% compared with the industry’s fall of 7.9%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Goldman is not the only one trimming its workforce. Many other Wall Street banks, including Citigroup (C - Free Report) and Bank of America (BAC - Free Report) , have been taking similar steps.
Since the start of the year, Citigroup is on track to trim its workforce by 5,000 by the end of this month. The job cuts are taking place across the company, with the majority of these occurring in the banking, markets and functions divisions. The slowdown in business activity has likely compelled C to reduce headcount.
Last month, it was reported that Bank of America intended to eliminate 40 positions in its Asia region’s IB unit. Of the affected employees, the majority are based in Hong Kong, with a particular emphasis on China, and hold junior positions, per people familiar with the matter. BAC’s latest redeployment strategy aims to serve as a temporary measure in response to the dealmaking scarcity and slowdown in China’s economy.