The great layoffs have been happening for months now. Large companies are laying off thousands of employees at a time. Small companies have been slicing their workforces in half and completely getting rid of whole departments. Some say it’s to gear up for the next great depression whilst others think it’s not even a threat to the economy. Only time will tell.
However we have another big hitter in the field, Goldman Sachs has cut 3,200 positions. Some speculate as the year progresses that number may grow.
The New York Post is calling it a “bloodbath” and has even learned that the upcoming layoffs have a nickname internally, “David’s Demolition Day” (after CEO David Solomon). I never thought Goldman Sachs could frighten me beyond what they might do to my savings account.
The 3,200 (or 6% of their workforce) is in addition to the usual 1-5% the company normally trims of its employee pool. Goldman Sachs could easily drop 10% of their headcount this year alone.
In an internal voice memo sent to employees back in December, Solomon stated “We need to proceed with caution and manage our resources wisely” in reference to the economic state of the country and the continuous slowdown of economic activity.
The layoffs are reportedly impacting every division, from the poor performing consumer banking unit to the core business banking and trade departments.
What’s very interesting to see here though, is their tactics. Prior to the 2008 finical crisis that hit the entire country, Goldman Sachs had a massive hiring spree and then let go of thousands. Those same tactics whatever the positive benefits they have are again being put into play.
This only furthers the suspicions of a financial downfall, predicted by larger corporations and money managers. Goldman Sachs, like many other companies, seeks to protect their investments and most contributing employees.