Goldman Sachs is warning of cuts amid fears about the job review process

Goldman Sachs CEO David Solomon said the ax will be sharpened again on Tuesday — and the bank’s annual performance review left employees even more stunned, The Post reports.

The hard-charging boss, who said on Tuesday it could reduce the “organization’s footprint,” highlighted workers worried about Goldman’s “Strategic Resource Assessment.”

Now the buckets are “whether you’re great, average or stink,” one source told The Post.

“The firm changes its review structure so often that it’s hard to keep up,” the source added. “They just can’t seem to figure out how to get it right internally.”

However, a Goldman spokeswoman denied that the company had changed its valuation process since 2020.

“There have been no changes since then and it would be wrong to say otherwise,” the spokesman said.

The investment bank has historically targeted between 1% and 5% of underperformers across the firm, according to a person with direct knowledge of the situation.

David Solomon warned of “tough times” in an interview on Tuesday.
Bloomberg via Getty Images

Employees will not know their fate for several more weeks. Those who managed to keep their jobs will learn about bonuses, which are expected to be significantly less this year.

“People are very nervous … they’re all looking forward,” one Goldman insider told The Post.

In September, Goldman began its biggest cuts since the start of the pandemic, cutting hundreds of jobs from a global workforce estimated at 47,000.

Solomon painted a dire picture of the economy and what steps Goldman is taking to stay afloat on Tuesday.

“You have to think we’re going to have some tough times ahead,” he told Bloomberg News. “You have to be a little more careful with your financial resources, size and organizational footprint.”

Goldman Sachs
Fewer employees may apply for 200 West Street in the new year.
Bloomberg via Getty Images

Goldman isn’t the only big bank looking to downsize. Morgan Stanley will cut about 2 percent of its workforce, a source familiar with the company’s plans said Tuesday. The job cuts, first reported by CNBC, will affect about 1,600 positions.

Morgan Stanley CEO James Gorman said in an interview last Thursday that the megabank was making “modest cuts around the world.”

“Some people will be let go,” Gorman told Reuters at a follow-up conference. “In most businesses, that’s what you do after years of growth.”

Other banks, including Citigroup, Wells Fargo and Barclays, are also making cuts.


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