Goldman Sachs (GS, Financial) is set to initiate its annual layoff plan, moving the schedule up to the spring, a shift from its usual practice of conducting layoffs in the latter half of the year. Sources familiar with the matter indicate that the layoffs will affect 3% to 5% of the workforce, similar to previous years. The primary focus of these layoffs will be on vice president positions.
The decision to target vice president roles comes after an increase in such positions during recent hiring sprees. This move aims to streamline the company's personnel structure. A Goldman Sachs spokesperson confirmed that the layoffs are part of the firm's routine annual personnel management process but declined to provide further details.
Historically, Goldman Sachs has conducted these adjustments in the latter part of the year, but this year’s layoffs are scheduled for the spring. According to the company's latest annual financial report, Goldman Sachs had a global workforce of 46,500 employees by the end of 2024, a slight increase from 45,300 at the end of 2023, but still below the 48,500 employees recorded in 2022.
This strategy aligns with Goldman Sachs’ ongoing efforts to control costs and make room for new talent. While the firm typically conducts annual layoffs, this practice was temporarily halted during the COVID-19 pandemic. The upcoming spring layoffs are expected to help the company refine its human resources structure to better adapt to future market conditions.
