Goldman Plans Second Round Of Job Cuts In 3 Months: Report

Goldman Sachs Group Inc (NYSE: GS) is planning another round of layoffs, people familiar with the matter told Bloomberg. The bank has been letting employees go as are part of its plan for $1.3 billion cost control measures within a three-year period, as announced in January this year.

What Happened: The latest decision would mark Goldman’s second round of job cuts within a span of three months. As per Bloomberg, the present round is not expected to eliminate more than 400 positions, which was the number for the previous layoff round.

There are speculations that moving into 2021 the bank would consider a higher magnitude of headcount reductions. Reportedly, the bank may also shift some of its operations from global financial hubs to cities like Dallas in an attempt to cut costs.

In September, Goldman decided to eliminate around 400 jobs, citing it to be a “modest number of layoffs.”

Why Does It Matter: Goldman Sachs, along with industry peers from the banking sector, chose to postpone any layoffs at the onset of the COVID-19 virus, as per Bloomberg.

In August, Wells Fargo & Co (NYSE: WFC) announced that it would commence layoffs using a combination of attrition and elimination of open roles, Bloomberg reported in August.

A month later, banking peer Citigroup Inc (NYSE: C) also announced plans to resume job cuts.

Price Action: GS shares closed at $224.65, 1.02% higher at the end of Tuesday’s trading session.

Photo by Augie Ray on Flickr