This company is planning to lay off 4000 employees, know the reason

Goldman Sachs Layoffs 2022: The era of layoffs is not taking the name of ending, one after the other many big companies are retrenching themselves. By giving short notice to the employees, the company is showing them the way out. In such a situation, another big news is coming out. American investment banking company Goldman Sachs Group, Inc. plans to lay off more than 4000 of its employees.

preparing for recession

The company has made this retrenchment plan at a time when it is facing its difficult times. The same company is insisting on restructuring its consumer business. The company is making such a plan so that it can prepare itself for the coming recession by reducing its expenses. The company is incurring huge losses in the retail banking business and in such a situation layoffs are the only way out. It is known that this company is giving employment to more than 49,000 people worldwide. Currently, about 81,567 employees work in the company.

The reason given by the company

The move comes after the company’s Chief Executive Officer David Solomon announced plans to scale down ‘Main Street’ banking ambitions, according to media reports. The same banking major is planning to stop offering personal loans through its Marcus-branded retail banking platform. Solomon announced in October that Goldman would shrink its retail banking unit after years of losses and rising costs.

Recession likely in 2023

It has been said in this report that, these layoffs in the company will be in addition to the annual layoffs of the worst performing employees. Usually banking firms do this every year. Goldman Company is also ready for a possible recession in the year 2023. Solomon said that Goldman has ‘started some cost reduction plans’. It will take some time to feel its benefits.

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