Goldman Sachs has begun axing managing directors across the globe as the Wall Street giant looks to cut costs amid a profitability crunch, sources familiar with the matter told Bloomberg.
About 125 managing directors, including some in investment banking, are going to be fired as part of a round of layoffs that’s set to affect 250 employees at every level.
While the spokeswoman declined to comment any further, sources — who asked to remain anonymous since the matter isn’t public — told Bloomberg that managing directors have already begun to receive pink slips.
The latest reduction in headcount comes as deal values have fallen more than 40% to $1.2 trillion this year.
In September, Goldman handed pink slips to 1% to 5% of mid-level investment bankers in the US, London and China offices.
The cuts came after the Wall Street behemoth reported second-quarter earnings of $2.93 billion, precipitously lower than the second quarter of 2021, when the bank hauled in $5.49 billion.
Then in December, sources caught wind of an impending cut of as many as 4,000 “low performing” staffers — a week after Goldman reportedly slashed its struggling retail banking division by 400.
The bloodbath was dubbed “David’s Demolition Day” as word of the layoffs by hard-charging chief executive David Solomon spread throughout the firm’s headquarters in downtown Manhattan.
By January, 3,200 workers were removed from payroll — the most significant since Goldman culled its ranks following the 2008 financial crisis.