CEO David Solomon said he will make cuts in January with reports claiming investment bank will axe about 4,000 posts
after coronavirus pandemic lockdowns. Goldman Sachs and other banks expanded to take advantage, but the number of lucrative deals fell back in 2022 amid rising interest rates around the world.
“There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon said in the message. “For our leadership team, the focus is on preparing the firm to weather these headwinds.” Goldman is still forecast to report big profits for this year and next. Analysts surveyed by S&P Global Market Intelligence predict it will make $12bn in net profits for 2022, and $13bn in 2023.
That would be bigger than any year since the global financial crisis in 2009, barring its record profits of $21bn in 2021. However, the bank has been under pressure to improve its stock market valuation, which is lower relative to some US investment bank rivals such as Morgan Stanley. Its share price has fallen by 14% during 2022.
Completing job cuts in the first fortnight of January would allow Goldman executives to present them to investors on 17 January, when the bank will report its full-year 2022 results. Solomon is then also due to speak to investors in February about a restructuring plan he announced in October to try to improve its profitability.
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