Goldman Sachs prepares to axe 3,200 jobs amid cost-cutting – reports

Institutional banks have been hit by a major slowdown in activity in recent months due to volatility in the global financial markets.

The US investment banking giant is reportedly set to cut around 3,200 jobs (Alamy/PA)

Goldman Sachs will start cutting thousands of jobs across the business from this week in an effort to sharply cut costs, according to reports.

The US investment banking giant is expected to axe around 3,200 roles as it prepares for tough economic conditions, including recessions in many key markets.

According to Bloomberg, the bank will cut around 6.5% of roles from its 49,000 workforce and will include reductions in its core trading and banking units.

The company is also expected to cut hundreds of jobs from its loss-making consumer operation after scaling back its direct-to-consumer Marcus division.

It is not known where the job losses will occur, but the firm has six offices in the UK, including in London where it is believed to employ around 6,000 staff, and in Birmingham and Milton Keynes.

Its largest presence is in the US, where it has more than 25 offices.

Last month, chief executive David Solomon reportedly sent a voice memo to staff for the year end, warning that headcount was set to be reduced in the new year.

The group is expected to start the cuts from Wednesday this week.

Goldman Sachs had significantly grown its workforce since 2020 as it sought growth opportunities following the pandemic.

However, institutional banks have been struck by a major slowdown in activity in recent months due to volatility in the global financial markets.

Annual bonuses season is due to kick off this week as JP Morgan, Citi and Bank of America all report their results for the past year.

The drop-off in deal activity is expected to result in a marked fall in bonus payments.

In December, the Financial Times reported that Goldman Sachs was considering cutting its bonus pool for investment bankers by at least 40% this year as it seeks to keep control of costs.

Goldman Sachs is due to report on its own fourth quarter figures on January 17.

The company declined to comment.