Goldman Sachs Cuts 3,200 Employees in Largest Reduction Since 2008
Goldman Sachs eliminated roughly 3,200 positions -- about 6.5% of its workforce -- in the firm's biggest round of layoffs since the 2008 financial crisis, as dealmaking revenue cratered and the consumer-banking experiment failed.
Why Did This Happen?
Investment-banking fees plummeted over 40% as IPO and M&A markets froze amid rising rates
Marcus consumer-banking division accumulated billions in losses and was being wound down
Trading revenue, while strong, could not offset the combined decline in other divisions
CEO David Solomon faced board pressure to exit non-core businesses and protect margins
Impact Analysis
The layoffs hit mid-level bankers, consumer-banking staff, and operations teams in New York, Salt Lake City, and Dallas. Goldman subsequently exited Apple Card partnership, sold GreenSky lending platform, and refocused on its core strengths in investment banking, trading, and asset management. The retreat from consumer banking represented a major strategic reversal.