Goldman Sachs to Conduct Restructuring... "Plans to Cut Over 1,300 Employees"

"Part of the Annual Review Process for Managing Low Performers"

U.S. investment bank (IB) Goldman Sachs plans to cut more than 1,300 employees worldwide as part of its annual review process to eliminate low performers, the U.S. daily newspaper The Wall Street Journal (WSJ) reported on the 30th (local time), citing sources.

Goldman Sachs may reduce 3-4% of its total workforce, according to these sources. Considering that Goldman Sachs had 45,300 employees as of the end of last year, WSJ estimated that approximately 1,300 to 1,800 employees will be affected.

Typically, Goldman Sachs aims to reduce 2-7% of its employees annually based on various performance indicators. This range has fluctuated over the years depending on market conditions and the company’s financial outlook.

This is part of the annual review process known at Goldman Sachs as the "Strategic Resource Assessment" (SRA). Tony Prato, a Goldman Sachs spokesperson, said, "Our annual talent review is routine, ordinary, and customary, and nothing special." He added that the total number of employees is expected to be higher at the end of this year compared to last year.

The annual review process measures performance using several factors. One increasingly important factor is office attendance. In the wake of the global COVID-19 pandemic, U.S. banks including Goldman Sachs relaxed requirements for employees to work outside company offices. However, they have now begun to enforce stricter policies for employees who do not regularly come to the office. Goldman Sachs and JPMorgan Chase are among the banks that expect many employees to work in the office most days.

Goldman Sachs temporarily suspended the SRA program during the COVID-19 pandemic but resumed it in 2022, conducting layoffs involving hundreds of employees in September of that year. In January 2023, about 3,200 employees, roughly 6% of the total workforce, were laid off, and additional reductions have occurred since then as part of the SRA.