Wall Street plunges on Goldman Sachs earnings miss, tech drag
D. Alexander Capital CIO Larry Shover and Revere Securities CSO Scott Fullman react to the Wall Street sell-off.
Goldman Sachs is planning to lay off as many as 3,200 employees this week, a source familiar with the matter said, as Wall Street contends with an uncertain U.S. economy and volatile markets.
This marks the latest sign that cuts are accelerating across Wall Street as dealmaking dries up.
Still, the firm will continue strategic hiring, the source said. In addition, Goldman's new analyst class, which totals about 3,000 people, will start later this year.
Goldman's headcount totaled 49,100, according to its latest earnings report.
GOLDMAN SACHS PLANNING TO LAY OFF THOUSANDS OF EMPLOYEES
Investment banking revenues have plunged this year amid a slowdown in mergers and share offerings, an about-face from a blockbuster 2021 when bankers received big pay bumps and firms, like Goldman, ramped up hiring.
|GS||THE GOLDMAN SACHS GROUP INC.||348.08||+4.32||+1.26%|
Even "against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients," CEO David Solomon said in the company's third-quarter earnings report.
Goldman Sachs declined to comment on the matter.