– Goldman Sachs Cuts Over Hundred Managing Directors As M&A Activity Sours:
The higher interest rate environment has weighed on merger and acquisition activity in recent quarters. Interest rate swaps show rate traders are expecting the Federal Reserve to hold rates around 500 bps to 525 bps through the end of the year. Tougher financial conditions are sticking around for now, and perhaps the continued slowdown in dealmaking is why Goldman Sachs is preparing to cut higher seniority staff members.
Bloomberg reported that 125 managing directors, some in investment banking, across many offices worldwide, will lose their jobs. These are higher-level staff members versus the thousands of lower-tier staff that lost their jobs earlier this year in a cost-savings plan amid waning dealmaking activity.
In May, Goldman prepared for the third round of layoffs. Last September, the investment bank cut hundreds of jobs, followed by a massive 3,200 layoff, or about 6% of all employees, in January.
At the end of the first quarter, Goldman had a total workforce of about 45,400. The bank has been reducing its headcount since peaking at 49,000 in the third quarter of 2022.
Goldman’s hiring spree is over.
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