Goldman Sachs is planning a new round of layoffs this week, its second in less than three months, Bloomberg reported earlier on Tuesday and Business Insider confirmed.
A person familiar with Goldman’s plans told Business Insider the bank will make hundreds of cuts — amounting to less than 1% of its workforce — across various divisions and office locations, and that the cuts won’t be specifically concentrated within specific teams.
The second wave of cuts comes after the bank laid off around 400 employees in September, Bloomberg first reported, despite suggesting this summer that job cuts wouldn’t resume until 2021 as the pandemic plunged the economy into a recession and caused unemployment rates to surge.
“At the outbreak of the pandemic, the firm announced that it would suspend any job reductions. The firm has made a decision to move forward with a modest number of layoffs,” a spokesperson for Goldman told Business Insider at the time.
Goldman is not the only bank to have reversed course and resumed layoffs. In recent months, other firms have decided to once again proceed with cost-saving plans: Giants like HSBC, JPMorgan Chase, Deutsche Bank, and Wells Fargo have all moved forward with cuts.
In June, Goldman CEO David Solomon told Bloomberg TV that the firm had thus far refrained from making broad cuts until 2021 “because it hasn’t been appropriate,” he said, adding that Goldman hires 2,000 to 3,000 people out of school each year and normally looks at the firm’s bottom 5% to make room for new blood. He also said Goldman still has medium- and longer-term goals to run more efficiently that it had laid out at its first-ever investor day.
But as COVID-19 cases surge again this winter and a widely available and effective vaccine likely remains months away, many Wall Street firms have restarted the massive cuts they already had planned before the pandemic hit.
SEE ALSO: 4 brand-new Goldman Sachs partners told us what it’s like to get a call from CEO David Solomon inviting them to one of Wall Street’s most exclusive groups https://www.businessinsider.com/goldman-sachs-partners-learned-david-solomon-morning-call-wall-street-2020-11?r=ts-sub
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