Goldman Sachs Group will begin cutting thousands of jobs at the firm from Wednesday, two sources familiar with the move said, as it prepares for a tough economic environment.
Just over 3,000 employees will be let go, said one of the sources, but the final number is yet to be determined. One of the sources said the scale of the layoffs would be the biggest since the 2008 financial crisis.
The sources could not be named because the information had not yet been publicly disclosed. Goldman Sachs declined to comment.
Bloomberg News reported on Sunday that Goldman would eliminate about 3,200 positions.
Goldman had 49,100 employees at the end of the third quarter, adding a significant number of employees furloughed during the coronavirus pandemic.
One of the sources said the layoffs are likely to affect most of the bank’s major divisions, but should focus on Goldman Sachs’ investment banking arm. Wall Street banks have suffered a major slowdown in corporate dealmaking activity as a result of volatile global financial markets.
Goldman Sachs’ consumer business, Marcus, is also likely to lose hundreds of jobs, sources said, as it scaled down plans for the loss-making unit.