Leading U.S. investment bank Goldman Sachs (GS) is planning to cut thousands of jobs worldwide as it braces for an economic recession.
The job cuts are expected to be just over 3,000 positions and impacted employees are to be notified this week, according to multiple media reports.
Goldman Sachs had 49,100 employees globally at the end of the third quarter of 2022. The bank added significant numbers of staff during the pandemic.
The layoffs are expected to be concentrated in Goldman Sachs’ investment banking division, which has seen a major slowdown in corporate dealmaking over the past year.
U.S. banks executed $517 billion U.S. worth of equity capital markets transactions in 2022, the lowest level since the early 2000s and a 66% drop from 2021, according to Dealogic data.
Hundreds of jobs are also likely to be eliminated at Goldman Sachs’ loss-making consumer business unit called “Marcus.”
The job cuts come ahead of Goldman Sachs’ annual bonus payments that are usually delivered in late January and expected to be down about 40% this year.
Goldman Sachs’ stock is down 13% over the last year at $348.08 U.S. per share.