Job Review Process Has Goldman Sachs Employees Shaking as Company Warns of Possible Layoffs
Edited by: TJVNews.com
Employees at the iconic Goldman Sachs investment bank appear to be rattled and stressed out even more than they had been in the recent past. According to a report in the New York Post, Goldman Sachs CEO David Solomon signaled on Tuesday that he’s once again revising the bank’s yearly performance review.
Solomon said on Tuesday that he may slim down the “footprint of the organization” and already nervous employees have expressed their grievances about the ever changing “Strategic Resource Assessment” that Goldman utilizes, the Post reported.
Speaking to the Post on the condition of anonymity, one source said, now the buckets are “you are great, you are average, or you stink.”
The source added that, “The firm changes the review structure so frequently it’s hard to keep up. It’s like they can’t figure out how to get it right internally,” according to the Post report.
Denying the company has changed its assessment process since 2020, a spokesperson for Goldman Sachs told the Post, “there haven’t been changes since and it’s inaccurate to say otherwise.
A person with direct knowledge of the situation told the Post that the investment bank has historically targeted between 1% and 5% of lower performers in positions across the firm.
As nervous Goldman employees contemplate their fate, they will not be advised as to whether they still have their jobs for a few more weeks, the Post reported. As most employees in the high end financial sector can attest to, it is the end of the year bonuses that they are most looking forward to. The Post has reported that those employees that do not receive a pink slip may expect that their bonuses will be considerably less this year.
Speaking to the Post, one Goldman insider said: “People are very nervous… all just waiting in anticipation.”
The massive layoffs at Goldman began in September and were considered the largest round of job cuts since the Covid pandemic erupted, as was reported by the Post. The global Goldman workforce is estimated at 47,000 and these layoffs were geared towards eliminating hundreds of jobs from that number, the Post reported.
On Tuesday, Solomon described how Goldman will stay solvent and presented a dismal view of the economic future, the Post reported. Speaking to Bloomberg News, Solomon said, “You have to assume that we have some bumpy times ahead. You have to be a little more cautious with your financial resources, with your sizing and footprint of the organization,” according to the Post report.
Other major banks are also following Goldman in terms of seeking ways of downsizing. Two percent of the Morgan Stanley workforce will be reduced, a source familiar with the company’s plans told the Post on Tuesday. CNBC was the first to report on this and the slashing of jobs affect approximately 1600 positions, the Post reported.
In an interview that took place last week, James Gorman, the CEO of Morgan Stanley said that the bank had intentions of making “modest cuts all over the globe,” the Post reported,
The Post also reported that during a sitdown at the Reuters Next Conference, Gorman said, “Some people are going to be let go. In most businesses, that’s what you do after many years of growth.”