According to a comprehensive report by multiple foreign media, an informed source revealed that Goldman Sachs Group plans to lay off 1,300 to 1,800 employees worldwide in the next few weeks, accounting for 3% to 4% of its total employees, in order to eliminate poor performers in the annual performance evaluation. This round of layoffs is expected to involve all departments. As of the end of June this year, Goldman Sachs had about 44,400 employees worldwide.

Typically, Goldman Sachs cuts 2%-7% of its total workforce each year based on various performance factors, with the specific layoff ratio fluctuating based on market conditions and the company's financial outlook.

According to Cailian Press, a person familiar with the matter revealed on Friday (August 30) that Wall Street investment bank Goldman Sachs plans to lay off hundreds of employees as part of the annual evaluation process for underperforming employees.

This move is aimed at controlling costs and making room for new talent, and is a typical practice of Goldman Sachs. In the past, after a two-year hiatus due to the COVID-19 pandemic, Goldman Sachs resumed this practice in 2022, which is to lay off low-performing employees every year.

A Goldman Sachs spokesperson said, "Our annual talent review is normal, standard and customary. We expect Goldman Sachs' headcount in 2024 to exceed that in 2023."

Over the years, layoffs made under Goldman Sachs' strategic resource review have fluctuated based on market conditions and financial outlook. Last year, layoffs were reported to be near the lower end of the usual 1%-5% range. The company conducted multiple rounds of layoffs in 2023 as higher long-term interest rates weighed on the macroeconomic outlook, affecting trading.

Goldman shares have surged 32% this year, outperforming the broader market and an index that tracks big bank rivals. But dealmaking activity remains below historical averages despite a recovery across the industry.

According to the Securities Times website, the recently disclosed financial report shows that Goldman Sachs' net revenue in the second quarter was US$12.73 billion, a year-on-year increase of 17%, higher than the previous market consensus of US$12.39 billion. Among them, Goldman Sachs' fixed income, currency and commodities (FICC) business revenue in the second quarter was US$3.18 billion, a year-on-year increase of 17%; investment banking business revenue was US$1.73 billion, a year-on-year increase of 21%; stock sales and trading business revenue was US$3.17 billion, a year-on-year increase of 6.8%. In the second quarter, Goldman Sachs' net profit exceeded US$3 billion, a year-on-year increase of 150%.

Since 2023, many large financial institutions around the world have faced profit pressure due to capital market fluctuations and rapid interest rate increases, and have announced layoffs. According to reports from the six major Wall Street banks, in 2023, except for JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley will all lay off employees, among which Wells Fargo's global headcount will decrease by 12,000, Citigroup will lay off 5,000, Morgan Stanley will lay off 4,800, Bank of America will lay off 4,000, and Goldman Sachs will lay off 3,200. Overall, the number of layoffs by major Wall Street banks in 2023 is close to 30,000.

It is worth noting that some major banks will continue to expand layoffs in the future. According to a recent report by the Wall Street Journal, Citigroup plans to cut about 20,000 jobs, or 10% of the group's employees, by the end of 2026. By the end of 2023, the group's total number of employees will reach 200,000. Deutsche Bank also announced plans to lay off 3,500 non-client-facing employees by 2025, a plan that already includes more than 800 positions cut last year.