Goldman Sachs to cut at least 400 jobs in retail banking unit as deals fall apart: report

Goldman Sachs aims to cut at least a few hundred more jobs, Bloomberg Law reported on Monday, citing people familiar with the matter.

The bank is developing plans that could cut at least 400 positions from its loss-making retail banking operations, according to the report.

Goldman Sachs did not immediately respond to Reuters’ request for comment.

The firm cut nearly 500 jobs in September, an early signal to Wall Street that economic conditions are worsening.

Global banks including Morgan Stanley and Citigroup Inc have slashed their workforces in recent months as Wall Street deals fizzled out due to higher interest rates and rising inflation.

Also on Monday, Goldman said it plans to stop making unsecured consumer loans, Reuters reported, another sign the bank is exiting its consumer business.

The move comes after Goldman said in October it would scale back its ambitions for its loss-making consumer unit Marcus. Marcus was moved to the bank’s wealth management division as part of a reorganization of the company’s core business units.

Goldman launched Marcus in 2016 as an online platform offering personal loans and savings accounts to retail customers. Although Marcus was launched to attract mass-market customers, it struggled to introduce traction or checking accounts.

According to the company’s third-quarter earnings, the business attracted $110 billion in deposits, nearly $19 billion in loans, and has more than 15 million active customers. According to Marcus’ website, the online savings account offers an interest rate of 3%.

Goldman will also end beta testing for its account among employees, the source said. But the savings account will remain available because it is an important source of funding for the firm, the source added.


Related Articles

Latest Posts