According to a report by Reuters, citing unidentified sources with knowledge of the matter, Goldman Sachs Group Inc intends to begin cutting thousands of jobs across its business from Wednesday, as it braces for unfavorable macroeconomic conditions this year.
According to one of the sources, job reductions may exceed 3,000, but the final number is still to be determined.
A Bloomberg News report over the weekend stated the Wall Street bank would cut nearly 3,200 jobs.
The cuts will likely affect the majority of Goldman Sachs’ divisions, but most prominently its investment banking division, according to one of the sources.
Hundreds of jobs will probably be cut from the lender’s loss-generating consumer business, after the bank scaled back plans for its direct-to-consumer unit Marcus.
At the end of Q3, Goldman Sachs employed 49,100 people after some intensive staff hiring during the COVID-19 pandemic.
The shares of Goldman Sachs Group Inc (GS) closed 1.26% ($4.32) higher at $348.08 in New York on Friday, with the bank’s total market cap now standing at $117.87 billion.
The shares of Goldman Sachs Group Inc retreated 10.24% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).
Analyst stock price forecast and recommendation
According to TipRanks, at least 7 out of 11 surveyed investment analysts had rated Goldman Sachs Group Inc’s stock as “Buy”, while 4 – as “Hold”. The median price target on the stock stands at $415.70.