New York-based multinational investment bank, Goldman Sachs, is reportedly planning to cut more than a hundred jobs in the consumer business division as it has been suffering losses for the past few months. Individuals who have knowledge about the latest move told news agencies that Chief Executive Officer of Goldman Sachs, David Solomon is also planning to scale back the “Main Street” banking ambitions of the multinational financial institution.
Bloomberg reported a few hours ago that the layoff would impact nearly 400 employees at the financial institution. It is important to note that these layoffs are in addition to annual layoffs which the company practices on a regular basis. Goldman Sachs conducts layoffs every year when underperforming employees would be fired from their position. For the last two years, the regular layoff practice had been paused due to the coronavirus pandemic and forced lockdowns.
Goldman Sachs which was founded more than 153 years ago by
Marcus Goldman and Samuel Sachs are today one of the largest publicly traded financial institutions in the world. As of 2021, there are more than 43000 employees working under different departments of the global financial giant.
Reports also suggest that the banking company is also planning to stop personal loan offerings through its Marcus-branded retail banking platform. Personal loan products of Goldman Sachs, which were launched in 2016 have been one of the primary debt consolidation methods of the banking company.
A few weeks ago, the financial institution announced that it would be trimming down the retail banking business due to increasing costs and back-to-back losses suffered by the division. There is also information that Marcus division of Goldman Sachs will continue to accept a retail deposit as it offers a relatively cheap source of funding for the bank.
The push into consumer banking had been one of four growth areas identified by Solomon to make Goldman less reliant on profits at its investment banking and trading divisions, sometimes profitable yet volatile businesses that investors do not assign much value to.
Following the restructuring announced in October, the consumer division will be split into two, with Marcus sitting in Goldman’s broader wealth management business and the rest of Goldman’s retail banking operations — such as its Apple credit card partnership — forming part of a new “Platform Solutions” unit.