Goldman Sachs will start cutting thousands of jobs across the firm from this week in an effort to sharply cut costs, according to reports.
The US investment banking giant is expected to cut around 3,200 roles as it prepares for tough economic conditions, including recessions in many key markets.
According to Bloomberg, the bank will cut around 6.5% of roles from its 49,000 workforce and will include reductions in its core trading and banking units.
The firm is also expected to cut hundreds of jobs from its loss-making consumer operation after scaling back its direct-to-consumer Marcus division.
Last month, chief executive David Solomon reportedly sent a voice memo to staff for the year end warning that headcount was set to be reduced in the new year.
The group is expected to start the cuts from Wednesday this week.
Goldman Sachs had significantly grown its workforce since 2020 as it sought growth opportunities following the pandemic.
However, institutional banks have been struck by a major slowdown in activity in recent months due to volatility in the global financial markets.
Annual bonuses season is due to kick off this week as JP Morgan, Citi and Bank of America all report their results for the past year.
The drop-off in deal activity is expected to result in a marked drop in bonus payments.
In December, the Financial Times reported that Goldman Sachs was considering cutting its bonus pool for investment bankers by at least 40% this year as it seeks to keep control of costs.
Goldman Sachs is due to report on its own fourth quarter figures on January 17.
The company has been approached for comment.
