Goldman Sachs Prepares Biggest Layoffs Since 2008 Financial Crisis

Goldman Sachs Group will start cutting thousands of jobs across the firm from Wednesday, two sources familiar with the move said, as it prepares for a tough economic environment.

Just over 3,000 employees will be let go, one of the sources said, but the final number is yet to be determined. That scale of layoffs would be the largest since the 2008 financial crisis, one of the sources said.

The layoffs are likely to affect most of the bank’s major divisions, but should centre on Goldman Sachs’ investment banking arm, one of the sources said. Wall Street banks have suffered a major slowdown in corporate dealmaking activity as a result of volatile global financial markets.

Hundreds of jobs are also likely to be reduced from Goldman Sachs’ consumer business, Marcus, after it scaled back plans for the loss-making unit, the sources said.

The bank’s chief executive David Solomon sent a year-end voice memo to staff warning of a headcount reduction in the first half of January, two separate sources said. Goldman Sachs declined comment on the memo. (Read more from “Goldman Sachs Prepares Biggest Layoffs Since 2008 Financial Crisis” HERE)

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