Investment bank Goldman Sachs begins mass layoffs nationwide as pandemic largesse dries up

Goldman Sachs revived its practice of terminating its low performers in mass layoffs last week, after suspending the practice during the pandemic.

The new round of cuts comes after a 41% year-over-year decline in revenue for the Wall Street investment bank was revealed in July. Last year around this time, the company was hiking salaries and bonuses to attract talent.

The cuts came at all levels and in all divisions, with layoffs in the technology, media, and telecommunications (TMT) team, operating out of New York and San Francisco. Matt Gibson, a global co-head of the division, and Barry O’Brien, co-chief operating officer, addressed some of the TMT employees who were let go, according to Business Insider.

The consumer retail, industrial, and healthcare divisions are also reportedly facing cuts. Goldman Sachs declined to comment for the record on the reported personnel moves.

“Every year globally we conduct a strategic assessment of our resources and calibrate headcount to the current operating environment. We continue to remain flexible while executing against our strategic growth priorities,” a Goldman Sachs spokesperson told the New York Post.

While new pandemic hires might be spooked by the revival of the culls, an unnamed Goldman Sachs banker told Insider they were a return to tradition for the market-leading investment bank.

“I’ve been doing this for years. It’s happened before. And it’s going to happen again. It’s a combination of a bad year, so there’s less money to pay people, so you need fewer people,” the banker said.

Correction: Mr. Gibson and Mr. O’Brien remain with Goldman Sachs and were not part of the current round of layoffs. A previous version of this story misstated their status and has been corrected.