Goldman Sachs set to axe up to 8% of its workforce will within weeks

A brutal swathe of layoffs at Goldman Sachs will be unveiled within weeks, staff have been told.

Rumours that the Wall Street titan is set to axe up to 8pc of its workforce, or around 4,000 staff, began swirling this month.

Chief executive David Solomon confirmed in a memo to employees that redundancies would begin at the turn of the New Year.

The American banker, who is also a part-time DJ known as D-Sol, said: ‘We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January.’

He said there were a ‘variety of factors impacting the business landscape’, including higher interest rates which were slowing down economic activity and hampering deal-making. 

‘For our leadership team, the focus is on preparing the firm to weather these headwinds,’ Solomon said.

Goldman is expected to post annual revenues of around £33billion this year, its second-best performance behind last year’s record.

But its expensive foray into consumer banking through its Marcus brand, and a fall in lucrative mergers and acquisitions which it advises on, left it struggling to meet profitability targets.

The job cuts will come after years of hiring especially in the aftermath of lockdowns, when the deal-making boom saw investment banks scrambling for staff.

Since the end of 2018, Goldman’s workforce has expanded 34pc to more than 49,000. In the UK, it employs around 4,000 staff.

Goldman, which has typically handed its top performers eye-watering rewards, is also reportedly considering a hefty reduction in the size of its bonus pool – of up to 40 per cent, larger than those being eyed by rivals such as JP Morgan and Bank of America.