Goldman Cutting More Jobs Amid Deal Slump

Goldman Sachs Group is entering a third round of layoffs since last fall amid an ongoing deal slump, The Wall Street Journal reported. The latest round includes up to 250 jobs companywide, including managing directors and other senior executives, as first-quarter investment banking fees fell 26%.

The latest cuts, amid a deal-making drought on Wall Street, follow Goldman’s decisions to cut hundreds of employees in September and about 3,200 positions, or 6% of employees, in January. Goldman ended the first quarter with about 45,000 employees.
Senior Wall Street executives had expected investment banking to rebound during the first half of 2023. The slowdown was exacerbated by the turmoil among some regional banks, rising interest rates by the Federal Reserve, and worries about recession.
Dina Powell McCormick, one of Wall Street’s top women executives, is stepping down as head of Goldman’s business with government wealth funds. She is joining merchant bank BDT & MSD Partners, run by two former Goldman bankers, as president of global client services.
Morgan Stanley is cutting roughly 3,000 employees this quarter. Bank of America told analysts it will cut roughly 4,000 jobs, about 2% of its workers, by the end of June. Goldman reported it had 45,400 employees at the end of March, down 6% from December.

What’s Next: The latest Goldman cuts could come within a few weeks, the Journal reported. Wall Street’s deal slump is expected to weigh on 2023 bonuses, according to projections from Johnson Associates, which sees investment banking advisory incentive pay falling 15% to 20%.

—Janet H. Cho from Barrons