Goldman Sachs Gets Ready to Fire Hundreds of People
Goldman Sachs (NYSE:GS) is getting ready to fire hundreds of people in the latest wave of cuts happening throughout the remainder of the year.
“The Wall Street giant is under pressure due to falloff in investment banking activity,” says the Wall Street Journal.
People familiar with the matter say the financial giant is readying cuts that will impact a range of employees, including managing directors and other senior executives.
One of the people said the layoffs would affect fewer than 250 jobs.
The timing couldn’t be determined but the cuts could occur within a few weeks, some of the people said.
The layoffs would mark a third round of job cuts at Goldman in less than a year.
Goldman cut a few hundred employees in September as part of normal management of staffing levels and then eliminated roughly 3,200 positions, or about 6% of employees, in January.
The bank had about 45,000 employees in the first quarter, per WSJ.
“Senior executives at Goldman and other investment banks expected an investment-banking rebound to occur during the first half of the year, but that failed to materialize.
The recent crisis among some regional banks, the Federal Reserve’s campaign to tamp down inflation via interest-rate increases, and recession fears have threatened to extend that slowdown.
Read: New Study Shows Nearly 190 Banks on Verge of Collapsing
Bank Layoffs Trigger Panic in Banking Industry
JPMorgan (NYSE:JPM) has cut 500 additional jobs following the new layoffs in First Republic Bank where more than 1,000 employees were notified of being let go.
Reuters reported on Friday that the bank was cutting about 500 employees this week across its various departments, according to a person familiar with the situation who asked not to be identified discussing personnel matters.
The layoffs will affect employees across the bank’s main businesses — consumer, commercial banking, asset and wealth management — as well as technology and operations, the source said.
Just a day prior to the 500 additional layoffs, JPMorgan said it was laying off 1,000 First Republic Bank employees.
“The cuts are a further blow to First Republic employees, who have already had a challenging two months.
Following the collapse of Silicon Valley Bank and Signature Bank in March, customers of First Republic withdrew tens of billions of dollars of deposits and the lender was ultimately shuttered by US regulators and sold over a weekend to JPMorgan,” said FT.
Within the next 30 days, JP Morgan will notify First Republic employees of their job status, and not everyone will be offered a position with the bank.
Morgan Stanely (NYSE:MS) also cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank last week.
Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.
Read: Morgan Stanley CEO Steps Down in Middle of Banking Meltdown
Other Serious Bank News Today
The New York City (NYC) Banking Commission is freezing new bank deposits at Capital One (NYSE:COF) and KeyBank.
Following the first-ever public hearing held by the New York City Banking Commission on Thursday last week, all three members voted to freeze deposits at Capital One and KeyBank after the banks failed to submit required plans demonstrating their efforts to root out discrimination.
JPMorgan had a similar occurrence when the bank began to freeze customer bank accounts in its latest scandal.
Republican attorneys general from 19 states say the bank is “persistently” discriminating against its own clients and closing bank accounts without warning.
However, Capital One’s story is a little different.
New York City Comptroller Brad Lander, one of three members of the Commission, also voted against designating three other banks to hold public funds: International Finance Bank, PNC Bank, and Wells Fargo, per New York City’s Comptroller press release.
“Banks seeking to do business with New York City must demonstrate that they will be responsible managers of public funds and responsible actors in our communities,” said Comptroller Brad Lander.
“Unfortunately, despite several opportunities to do so, five banks failed to comply with the New York City Banking Commission’s designation process – leaving us to conclude that they are not taking meaningful actions to combat discrimination in their operations and are not responsible stewards of public dollars.
I’m grateful to the Mayor, Finance Commissioner Niblack, Treasurer Jackman, Banking Commission Member Jenerette, and our partners at the Department of Finance for working with us to strengthen oversight over the banks that profit from public funds.”
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