If you're still at Goldman Sachs now, your job should be safe for a few months
As we were first to report here in March, Goldman Sachs brought forward its annual round of job cuts for underperformers to the second quarter this year.
Who is your Ideal Employer in finance? 💥 Answer our survey for a chance to win $1k
Despite suggestions that the cuts would occur in May, sources say Goldman's unlucky employees have now been informed of their fates. Whether they have gone or not depends upon local employment law and the need for consultation periods. "The intention was always to make the cuts directly after Easter," says one insider.
Goldman declined to comment. Between 3% and 5% of Goldman's staff were let go, or around 1,800 people.
For the past few years, the firm made its annual round of job cuts in the third quarter. Last year, a similar number of people were let go in early September.
Last week's cuts are thought to have disproportionately impacted Goldman's swollen population of vice presidents (VPs). As part of a broader cost-cutting move, Goldman is also said to be shunting managing directors to low-cost locations like Salt Lake City, meaning that staff who remain may still have their lives upended.
In advance of the cuts, Goldman increased headcount by 100 people in the first quarter (Q1).
Speaking during the investor call earlier this month, CFO Dennis Coleman said Goldman is still committed to achieving an efficiency ratio of 60% over a three-year period. The efficiency ratio (costs as a % of revenues) was above this at 60.6% in Q1. If Q2 revenues fall as a result of tariff chaos, the implication is that costs will be need to be cut again later this year. Last October, the WSJ said Goldman typically cuts between 2% and 7% of its workforce annually, depending on performance. - There could be another 2% or 3% to go.
Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, Whatsapp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email editortips@efinancialcareers.com. Signal also available.
Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libellous (in which case it won’t.)
