Goldman Sachs is planning to lay off at least a few hundred more employees, Bloomberg reported, citing sources familiar with the matter.
The US-banking group could sack 400 employees from its struggling retail banking business, the sources said.
Goldman Sachs has already laid off 500 people in September this year, reported Reuters.
The latest development comes after Goldman Sachs indicated in October that the bank is restructuring and reorienting the operations of its consumer unit Marcus , which was launched in 2016.
Goldman Sachs CEO David Solomon has also hinted that the bank’s other operations are being reviewed to manage headcount and limit expenses, the publication said.
After investing heavily in technology and integrating operations, the Wall Street major is now under increasing pressure to reduce costs, and analysts project a 44% decline in the company’s adjusted annual profit.
Rising costs at the consumer unit, a sluggish dealmaking environment, and a decline in asset values have affected the company’s bonus pool in 2022.
“We continue to see headwinds on our expense lines, particularly in the near term,” Solomon said last week.
“We have set in motion certain expense mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set.”
In another sign of Goldman Sachs’ departure from retail banking, the bank plans to stop offering unsecured consumer loans, the report said.
While the lender will continue to operate its other consumer offerings such as high-yield savings accounts, it will not roll out the beta version of checking-account offering.
As per the report, the bank is also conducting a review of its instalment lending unit, GreenSky.