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Goldman Sachs Warns of Looming Layoffs as AI Reshapes Wall Street Giant’s Operations

Goldman Sachs is preparing for another round of layoffs as part of a sweeping corporate overhaul driven by artificial intelligence, CEO David Solomon’s management team told staff in a companywide memo obtained by The Post.

The Wall Street powerhouse will “constrain headcount growth through the end of the year” and carry out a “limited reduction in roles across the firm,” according to the Tuesday memo — the same day the bank reported record third-quarter profits.

“Even when the business is performing well, we have an obligation to review our operations carefully and position the firm for the future,” Goldman management wrote.

“We don’t take these decisions lightly, but this process is part of the long-term dynamism our shareholders, clients, and people expect of Goldman Sachs.”

Goldman’s global headcount stood at 48,300 as of Sept. 30, nearly 2,000 more than a year earlier.

“The firm will finish the year with a net increase in headcount overall,” Jennifer Zuccarelli, a Goldman spokesperson, told The Post. (Read more from “Goldman Sachs Warns of Looming Layoffs as AI Reshapes Wall Street Giant’s Operations” HERE)

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Goldman Sachs Set to Fire More Than 1,300 Employees, WSJ Reports

. . .The Goldman Sachs CEO will slash more than 1,300 jobs as part of the bank’s ongoing review to cull poor performers, the Wall Street Journal reported on Friday

Goldman’s cuts will affect between 3% and 4% of Goldman’s 45,000-strong workforce, the Journal added, citing people familiar with the matter.

The layoffs have already started and will continue through the fall, according to the Journal, under the bank’s annual review process known as “strategic resource assessment.”

“Our annual talent reviews are normal, standard, and customary, but otherwise unremarkable,” Tony Fratto, a Goldman spokesman, told the newspaper.

He added that headcount would be higher at the end of 2024, compared to the end of last year. (Read more from “Goldman Sachs Set to Fire More Than 1,300 Employees, WSJ Reports” HERE)

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Woke Joke: Goldman Sachs Hands Out ‘Pronoun’ Pamphlets as It Fights Sex Harassment Suits

Rainbow-colored pamphlets advising “bring your authentic self” have lately appeared over cubicles at Goldman Sachs, coaching employees on the proper use of gender pronouns — and some bankers are reeling over the hypocrisy.

The pamphlet advises in addition to “she/her/hers/herself,” “he/him/his/himself” and the gender-neutral “they/them/their/themself” that another set of gender neutral pronouns is “ze/zir (zem) / zirs (zes) / zirself (zemself).”

Examples in a column to the right: “Ze went to the store. I spoke with zir / zem. The apple was zirs / zes.”

But some insiders say the posturing of Goldman — whose offices at 200 West. St. have long been run by old-school, testosterone-fueled, steak-eating males — embracing “woke” values is too much to stomach.

Goldman’s new message of acceptance and support looks especially phony given the mega-bank’s efforts to hush up accusations from thousands of women that sexism is rampant at the firm, employees gripe. (Read more from “Woke Joke: Goldman Sachs Hands Out ‘Pronoun’ Pamphlets as It Fights Sex Harassment Suits” HERE)

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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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Goldman to Refuse IPOs If All Directors Are White, Straight Men

. . .Goldman Sachs Group Inc. Chief Executive Officer David Solomon issued the latest ultimatum Thursday from Davos. Wall Street’s biggest underwriter of initial public offerings in the U.S. will no longer take a company public in the U.S. and Europe if it lacks a director who is either female or diverse. Asia is not yet included in the firm’s new policy.

The mandate is the latest in a series of signals that non-diverse boards and management are unacceptable. BlackRock Inc. and State Street Global Advisors are voting against directors at companies without a female director. Public companies with all-male boards based in California now face a $100,000 fine under a new state law.

“It’s what big investors are looking for these days,” said Fred Foulkes, a management professor at the Boston University Questrom School of Business. “If the board has all white males, that’s a big negative.”

Goldman Sachs acknowledged that “diversity” has other meanings around the world — including in Asia, where racial dynamics are different and gender disparities are sometimes even more glaring. The company said in a statement Friday that it intends to eventually expand its board-diversity mandate beyond the U.S. and Europe.

The corporate board has become a rare bright spot for gender and racial diversity at the highest echelons of corporate America. Almost half of the open spots at S&P 500 companies went to women last year, and for the first time they made up more than a quarter of all directors. In July, the last all-male board in the S&P 500 appointed a woman. (Read more from “Goldman to Refuse IPOs If All Directors Are White, Straight Men” HERE)

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Goldman Sachs Is in the Eye of the Campaign Storm

It’s not the biggest player on Wall Street in terms of political money. But Goldman Sachs is financial public enemy No. 1 in this year’s election campaign.

The giant investment bank has become the symbol of the excesses of Wall Street, cited both by liberals leery of deregulated banking and conservatives opposed to big banks and “crony capitalism.” And it’s being singled out for its ties to the political establishment because of two top contenders for the presidency.

Hillary Clinton, the front-running Democratic candidate, received $675,000 in speaking fees from the firm. Sen. Ted Cruz of Texas, a top challenger for the GOP nomination, borrowed $500,000 from the firm to help finance his Senate campaign and then failed to reveal it on one of his legally mandated disclosure forms. Also, his wife, Heidi, is a managing director at the firm in Houston, although she is on leave.

Their rivals drive home the connections to angry, anti-establishment voters.

“I don’t take money from big banks. I don’t get personal speaking fees from Goldman Sachs,” Sen. Bernie Sanders said in a recent debate with Clinton. (Read more from “Goldman Sachs Is in the Eye of the Campaign Storm” HERE)

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It’s Good to be Connected: Goldman Sachs’ Miniscule CFTC Fine Is A Joke

photo credit: erikdanieldrost

Last week, the U.S. Commodity Futures Trading Commission (CFTC) slapped Goldman Sachs (NYSE:GS) with a $1.5 million fine over inadequate control measures in its trading system which allowed an employee to falsify trades worth $8.3 billion in 2007. (CFTC Orders Goldman, Sachs & Co., a Commission Registrant, to Pay $1.5 Million for Supervision Failures, CFTC Press Releases, Dec 7 2012)) Goldman lost $118 million in the process of unwinding the positions.

We believe the global investment bank has been lucky on both fronts: while the fine amount in itself is too small to be material to the bank, the loss from the position is but a fraction of what the bank could have potentially lost. After all, we have witnessed the damage that wrong multi-billion dollar trading decisions by a single individual can do to a bank’s reputation and business on two distinct occasions in the recent past – the unauthorized trading incident at UBS (NYSE:UBS) last year (see Questionable Risk Controls Cost UBS More than Rogue Trades) and the hedging portfolio loss at JPMorgan (NYSE:JPM) this June (see JPMorgan’s Trading Losses Could Climb, Sold Profitable Securities To Cushion Impact).

We maintain a $127 price estimate for Goldman’s stock, which is about 5% above the current market price.

Read more from this story HERE.