Goldman Sachs (NYSE:GS) is beginning a new round of layoffs at the managing director levels across the globe according to people familiar with the matter.
The bank layoffs are part of a plan to cut costs which has already seen three rounds of cuts this year so far.
“About 125 managing directors, including some in investment banking, will lose their jobs,” a person was quoted as saying.
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.
Executive compensation has also been on a decline.
The bank said its board had awarded Chief Executive David Solomon compensation of $25 million for his work in 2022, compared with $35 million the previous year.
This comes to a reduction of approximately one third.
Goldman Sachs stock is down more than -9% this year-to-date.
[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”GS” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]
Recent Goldman Sachs News
Goldman Sachs is currently under a new investigation by the Fed and SEC.
(Reuters) The U.S. Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs Group’s role in two deals with Silicon Valley Bank that preceded the latter’s collapse, the Wall Street Journal reported on Thursday citing people familiar with the matter.
Silicon Valley Bank had booked a $1.8 billion loss on the sale of a bond portfolio to Goldman.
The Wall Street giant was also an underwriter for a failed share sale by the bank that eventually led to the meltdown.
The Fed and the SEC are seeking documents related to Goldman’s role as both buyer of the securities portfolio and adviser on the capital raise, the report said.
They are looking to see if Goldman’s investment banking side and its trading division were improperly communicating about the portfolio sale, the report added.
“SVB engaged Goldman Sachs to assist with a proposed capital raise and sold the firm a portfolio of securities.
Prior to that sale, Goldman Sachs informed SVB in writing that we would not act as their advisor on the sale, and that SVB should not rely on any advice from the bank in this regard, but instead hire a third-party financial advisor,” a spokesperson for Goldman said.
An SEC spokesperson said in an emailed statement the agency “does not comment on the existence or nonexistence of a possible investigation”.
A spokesperson for the Fed declined to comment according to Reuters.
Market News Published Daily 📰
Join the newsletter ⬅️ to receive daily stock market news, business news and updates straight to your inbox; more than 10,000 readers have joined!
THANK YOU to all of our blog sponsors, this year we’ve been able to increase our email sends and signup slots as well as introduce push notifications.
Franknez.com is the media site that keeps retail investors informed.
- Gain access to EXCLUSIVE FrankNez articles you won’t find here.
- Become part of a private and safe Discord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
Recommended For You ✨
- A Massive Bank Now Closes Several Branches in Florida
- Florida Now Has Massive Departures As Hundreds of Thousands Leave
- A US Company Now Declares An Unexpected Bankruptcy
- A US Bank is Now Denying Customers Access to Money
- Wells Fargo is Now Freezing Bank Accounts in New Scandal
- The US Treasury Direct is Now Freezing Customer Accounts