American banking giant Goldman Sachs Group is set to begin the process of cutting around 3,200 job this week across its global locations.
Over a third of the cuts could include staff from the bank’s core trading and banking divisions, reported Bloomberg.
The bank is also expected to announce over $2bn in pre-tax losses in its new credit card and instalment-lending activities, unnamed people told the agency.
A spokesperson for Goldman Sachs Group refused to give any update on the matter.
The bank’s plan to reduce the size of its investment banking division is triggered by the growing number of non-front-office positions in recent times.
However, the banking giant seeks to continue increasing its workforce that would involve the hiring of regular analyst staff later this year, added the report.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The latest development comes shortly after a Bloomberg report published last month that quoted Goldman Sachs CEO David Solomon as saying that the firm would undertake a fresh round of layoff this month.
The number of employees at the bank grew 34% since the end of 2018 to over 49,000 until 30 September 2022, reveals data. This growth was witnessed under the leadership of Solomon.
The bank has hold its annual practice of axing underperforming staff due to the Covid-19 pandemic, which is increased the intensity of job cuts this year, added the Bloomberg report.
Various others reasons, including decline in a number of business activities, a costly entry into the consumer-banking sector as well as uncertainty in markets and economy have led the bank to reduce its expenses.
Besides, a fall in asset prices has offset a large chunk of profits from the firm just a year back.