Goldman Sachs Group Inc (NYSE: GS) is in focus this morning after a CNBC report said the Wall Street bank plans on lowering its global headcount by up to 8.0%.
More than 3,500 employees could lose job
In September, the multinational had already laid off a few hundred.
So, it’s concerning if it’s considering a deeper cut only three months later because it could be a tell that it’s outlook for the next year is deteriorating.
That’s reflected in the analysts’ estimates as well. Goldman Sachs is expected to earn $6.80 a share in its fourth financial quarter, down significantly from $10.81 per share a year ago. The bank is scheduled to issue its quarterly update next month.
Anonymous sources also told CNBC that the financial services behemoth will likely execute the cut in January – ahead of when it typically makes the bonus payments.
Goldman Sachs has an investor day coming soon
Goldman Sachs will likely opt for a broad-based cut that will affect most if not all of its divisions, the report added. It is also noteworthy here that the bank is scheduled for an investor day in February.
Reacting to the stock market news, Mike Karp – the Chief Executive of Options Group said others will have to get leaner as well to prepare for the softness in capital markets.
Many firms will have to go back to the drawing board and right-size their organisations, it’s not just Goldman Sachs. Firms over hired, and now they will have to over fire, too.
Versus its year-to-date high, Goldman Sachs stock is currently down about 15%.
The post <strong>Goldman Sachs could execute a sizable job cut in January</strong> appeared first on Invezz.