Goldman Sachs is expected to fire about 3,200 workers starting on Wednesday — a massive bloodbath that bankers at the firm are calling “David’s Demolition Day,” The Post has learned.
Word of the layoffs by hard-charging chief executive David Solomon spread at the Wall Street giant’s headquarters in downtown Manhattan on Friday after a partner in the wealth management division was overheard telling a colleague that culling would begin the following week, sources said.
The firings — short of an earlier report that predicted as many as 4,000 casualties — are nevertheless the most significant since Goldman culled its ranks following the 2008 financial crisis. The bank is scrambling to offset plunging investment banking revenues following a sharp dropoff in mergers driven by so-called “blank check” companies.
The layoffs likewise follow a massive hiring spree under Solomon to fill demand for such pandemic-era dealmaking that has added more than 10,000 employees since he took the helm in 2018. As of Sept. 30, Goldman employed more than 49,000 worldwide, according to financial filings.
At least 1,000 casualties will hit the firm’s core businesses like banking and trading, according to a Bloomberg report. While trading revenues are expected to post a 22% jump for 2022, banking fees are seen down more than 50%, according to the report. Hundreds more layoffs are expected at Goldman’s troubled consumer banking unit, which the company said it was shrinking in October, admitting that it had never made money.
The layoffs will not affect the roughy 3,000 incoming analysts who will start their new roles in summer 2023, sources said.
Goldmanites have been jittery since Solomon revealed plans to lay off another round of workers during “the first half of January.”
“There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon said in a voice memo sent to employees at the end of December. “We need to proceed with caution and manage our resources wisely.”
A representative for Goldman declined to comment.
The job cuts come ahead of Goldman’s annual bonus payments, which are usually delivered later in January and are expected to fall about 40%, according to Reuters. The bank restarted its annual performance review process and staff cuts in September after pausing for two years during the pandemic.
The Wall Street giant typically trims about 1% to 5% of employees each year. These new cuts will come on top of the earlier layoffs.
As reported by The Post, Goldman yanked a free-coffee perk that workers had enjoyed each morning in the “Sky Lobby” on the 11th floor of its headquarters at 200 West. St. On Friday, a barista supplying free coffee to workers outside the building said bankers were “really bummed” about the coffee situation even as they feared for their jobs.
Shares of Goldman rose 1.4% to $353.
