Investment banking giant, Goldman Sachs, started the year on a sad note as the company started a massive round of layoffs worldwide on Wednesday. The company continues to grapple with falling profits and a global recession.
Laid off employees in New York City were described as “shell-shocked” as their ID cards were deactivated and they were escorted out of the building with blank expressions on their faces.
According to a source, most of the employees affected were in the company’s investment banking and global marketing divisions, but the layoffs affect most departments.
The mood was somber at the NYC office at 200 West Street in the financial district. One worker who survived the chop described the mood as eerie.
The layoffs began shortly after 8 am, with employees in shock and being escorted out of the building without warning.
Almost all levels of employees were affected, from analysts to managing directors.
Most of the fired employees were not briefed about their severance packages.
The job cuts, which had been anticipated, will represent the biggest cutbacks since the financial crisis. The layoffs will likely affect all its major divisions, with the investment banking division facing the most cuts.
A source said that about 3,200 employees were expected to lose their jobs globally, and the layoffs are just beginning.
Management explained its decision by saying it focused on resizing the company for future opportunities in what they termed a “challenging macroeconomic environment.”
Goldman Sachs is one of many companies in the banking sector undertaking a massive layoff. At least 5,000 people are being fired from various investment banking firms and banks, as experts predict a global recession soon.
Morgan Stanley cut around 1,600 employees, equivalent to 2% of its workforce. HSBC will also reportedly lay off about 200 people.
Before the layoffs, Goldman Sachs had about 50,000 employees worldwide. The current firings will reduce the workforce by about 6%. The company had added about 10,000 employees since the pandemic.
Goldman Sachs began its layoffs in Asia, letting go of 16 employees from their private wealth management business across Singapore, Hong Kong, and China. Eight employees were cut from their Hong Kong research department.
In recent months, Goldman Sachs CEO David Solomon raised concerns that clients were not investing as much as they used to, and he had to look at reducing costs. The layoffs will be followed by a review of their corporate travel and expenses.
Terrified employees who weren’t let go Wednesday fear they could be next.