Goldman Sachs silently cut 600 jobs in the fourth quarter
It turns out that JPMorgan wasn't the only one trimming jobs in the fourth quarter. Goldman Sachs was doing it too.
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Today's fourth quarter Goldman results show that the US bank ended December 2023 with 45,300 people, down from the 45,900 people it had in September. During 2023 as a whole, 3,200 jobs were cut, mostly as a result of the well-publicised job cuts at the start of the year.
The cuts in the final quarter appear to have been a little more low-key. They weren't entirely unremarked, though: the Financial Times reported in September that Goldman was cutting 440 underperforming employees, particularly at managing director level. The firm presumably decided to bump that up a bit.
Today's results explain why. M&A revenues at Goldman were down 29% year-on-year in the final three months of the year, and fixed income sales and trading revenues were down 24%. Goldman said its investment banking fee pipeline ended 2023 lower than at the same period of 2022.
With costs rising to nearly 75% of revenues (compared to 66% in 2023) and compensation spending down 4% in the final three months of the year, it doesn't bode entirely well for bonuses, which are announced at Goldman today.
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