The jobs axe is coming around again for one of the most reportedly ‘woke’ banking institutions in the world: Goldman Sachs. The bank is looking at firing up to 400 employees within its consumer banking unit according to new reports from Bloomberg, Forbes, and Financial Times. It is also set to reinstate a policy of annually terminating 1-5% of its lowest-performing employees.
The company, which Vivek Ramaswamy wrote “exploits ‘woke values’ to pursue its own profit and power,” ended 2022 with CEO David Solomon announcing on Tuesday that the bank’s annual performance review is coming around again and that he may be reducing the “footprint of the organization.”
Employees are reportedly dreading the company’s “Strategic Resource Assessment.”
A New York Post source within the banking giant told them that employees fall into one of three buckets, “you are great, you are average, or you stink.”
“The firm changes the review structure so frequently it’s hard to keep up,” the source said. “It’s like they can’t figure out how to get it right internally.”
Goldman Sachs had previously cut several hundred jobs in September from the global workforce of about 49,000 according to the Post. Solomon foreshadowed a more difficult road ahead for the company in comments he made at a conference last week according to Bloomberg.
“We continue to see headwinds on our expense lines, particularly in the near term,” Solomon said. “We’ve set in motion certain expense mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set.”
Analysts are predicting that Goldman’s adjusted annual profit will plummet by a devastating 44% in 2023. Concurrent with the reduction in staffing at its consumer lending unit, the bank will be halting all loan originations for consumers in a matter of months.
Goldman Sachs Group Inc. warned that more job cuts might be on the way and Bank of America Corp. has slowed hiring as the biggest US lenders prepare for a potential recession that’s sparked layoffs across corporate America. pic.twitter.com/zlr8WDFutL
— D.A. Market Securities Trade Online (@itradeph) December 6, 2022