Bank / Credit Union
Goldman Sachs to cut back hundreds of workers, along with free coffee
September 13, 2022
Goldman Sachs Inc. plans to lay off hundreds of workers as soon as next week. The layoffs are part of the bank's annual performance reviews, which were put on hold during COVID-19, according to a report by the Wall Street Journal.
Bank employees have also reported that Goldman Sachs has removed free coffee for junior level bankers at its headquarters in lower Manhattan, even as the bank demanded employees return to a mandatory in-person five-day work week, according to a report by The New York Post.
"RIP to another pandemic perk for junior bankers," a junior Goldman banker told the New York Post report. "I'm sure the partners still don't have to pay for their coffee — or anything in their fancy dining hall."
As for the layoffs, CFO Denis Coleman said Goldman Sachs would slow its pace of hiring, as well as its efforts to replace departing staff, due to falling profits this year, with second quarter investment banking revenue down by 41% and overall profits down by nearly half, according to the Wall Street Journal.
"There's no question that economic conditions are tightening to try to control inflation, and as economic conditions tighten, it will have a bigger impact on corporate confidence and also consumer activity in the economy," David Solomon, chief executive, Goldman Sachs, said during a conference call with analysts in July. "I think it's hard to gauge exactly how that will play out, and so I think it's prudent for us to be cautious."
