Goldman Sachs‘ layoff consideration will also be concurrent with the bank’s annual bonus payment, which the value is predicted to lower by 40%.
Heaptalk, Jakarta — The layoff tsunami phenomenon has widened in several business sectors, and the financial industry does not immune to this crisis. Recently, An investment banking corporation based in the United States, Goldman Sachs, is reported to lessen around 3,200 workforces, effective on Wednesday (01/11).
The employee termination is performed as this global investment banking company would encounter a complex economic situation in the following years. However, the termination of employment move is also concurrent with the bank’s annual bonus payment, which is usually mailed at the end of January and is expected to reduce the value by about 40%.
As informed in msn.com, the CEO of Goldman Sachs, David Solomon, revealed this layoff resolution is conducted as the company’s effort to salvage business of the global market economy construction and inflation troubles, impacting on investment potential in the society. He also affirmed the company’s termination step is also conducted to restrain corporate expense amidst the decrease in transactions in the United States.
However, as cited by Bloomberg, this global company will also remove around 3,200 positions. As it is informed, this banking corporation contained about 49,100 employees as of last year’s third quarter. This amount has enhanced after the company hunts new staff with a massive amount during the COVID-19 pandemic.
As a layoff effect, most of the bank’s major divisions are predicted to experience a significant impact, namely the banking investment divisions of Goldman Sachs. Also, this investment banking company has encountered a freefall in performing several corporation business agreements because of the global market financial conditions.
In the report of Goldman Sachs in 2022, the company recorded a decrease in the banking investment business unit of only worth US$77 billion, or nearly Rp1,200 trillion (US$1 equals Rp15,579), by the end of 2022. This result plummeted from the former outcome of US$132.3 billion or approximately Rp2,602 trillion in 2021.
Goldman Sachs has also executed a market transaction in the equity market worth US$517 billion (Rp8,059 trillion) by the end of December 2022. This outcome is considered the lowest level since early 2000 and encountered business derivation of 66%, compared to 2021.
Meanwhile, as informed in katadata, the total value of company mergers and acquisitions globally showed a decrease of 37%, becoming US$3.66 trillion (Rp57,061 trillion) as of December 20th, 2022. According to Dealogic data, this result decreased after the company hit an all-time enhancement of US$5.9 trillion (Rp91,969) last year.
