Investment banking giant Goldman Sachs is reportedly looking to cut around 4,000 jobs or nearly 8% of its staffs amid struggles to earn profit from its operations.

The bank, which has asked its managers at the higher rungs to explore areas for minimising costs, is yet to finalise the actual number of the cuts, an unnamed person privy to the development told Bloomberg.

Goldman Sachs is set to undertake the cuts early next year, according to BBC. The bank currently has a workforce of around 49,000 employees across the globe.

A spokesperson for the bank refused to give any updates on the cuts.

In recent years, the size of the bank’s workforce has been increased due to several acquisitions carried out by the firm to diversify its business.

The bank faced huge losses after expanding its reach into the consumer banking sector as dealmaking activities and asset prices continue to witness decline in the business.

Expenses made in technology and integration of businesses has also paved way for massive losses at the bank. Various analysts have forecasted that Goldman Sachs’ adjusted annual profit may drop 44%.

In October this year, The Wall Street Journal (WSJ) reported that Goldman Sachs Group could combine its major businesses into three units as part of an overhaul effort.

At a conference held last week Goldman Sachs CEO David Solomon said: “We continue to see headwinds on our expense lines, particularly in the near term.

“We’ve set in motion certain expense-mitigation plans, but it will take some time to realise the benefits.

“Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set.”