Report: Goldman Sachs to Reduce Staff by Up to 5% in Annual Review

Core Viewpoint - Goldman Sachs plans to cut 3% to 5% of its staff, amounting to approximately 1,395 jobs, as part of its annual talent management process, which is larger than previous reductions [1][3] Group 1: Layoff Plans - The planned layoffs are part of Goldman Sachs' normal annual review process, which typically results in workforce reductions of 2% to 7% depending on financial outlook and market conditions [1][2] - Despite the layoffs, Goldman Sachs expects its total headcount to be higher at the end of 2024 compared to 2023 [2] Group 2: Financial Performance - Goldman Sachs experienced a decline in deal-making and exited a consumer business, leading to several rounds of workforce reductions in 2023 [3] - The bank reported a three-year high in quarterly profits in January, with year-over-year revenue gains of 33% in Global Banking & Markets, 8% in Asset & Wealth Management, and 16% in Platform Solutions [4] - The growth in revenues was attributed to higher net revenues in equity and debt underwriting, as well as intermediation and financing in the Global Banking & Markets business [5] Group 3: Market Outlook - CEO David Solomon noted a meaningful shift in CEO confidence following the U.S. election, with an increased appetite for deal-making supported by an improved regulatory environment [6] - There is a significant backlog from sponsors, which is expected to spur further activity in 2025 [6]