Goldman Sachs reportedly set to lay off 125 managing directors worldwide
US banking giant Goldman Sachs is set to cut around 125 managing directors across its global operations in a bid to trim its headcount and bring down costs amid a slowdown in deals, Bloomberg reports.
Goldman Sachs is reportedly laying off around 125 managing directors
Sources tell Bloomberg that the MDs include some working in Goldman’s investment banking division and that the layoffs are currently ongoing.
The cuts come as deal values have dropped more than 40% to $1.2 trillion this year. In January, Goldman Sachs laid off more than 3,000 employees, amounting to around 6.5% of its total headcount, as part of a major cost-cutting drive.
Goldman faces loss on GreenSky
Meanwhile, according to a CNBC report, Goldman Sachs is potentially facing a large write-down for recently acquired fintech lender and buy now, pay later (BNPL) provider GreenSky.
Goldman Sachs acquired the company in a $2.24 billion deal in September 2021 as it looked to furnish its Marcus banking app with the platform’s capabilities. However, the bank later decided to fold Marcus into its wider asset and wealth management division in October 2022 amid a wider reorganisation as the firm shifted its focus away from its retail banking proposition.
In April, the bank announced it was exploring the sale of GreenSky, with CEO David Solomon telling analysts that despite GreenSky performing well, “given our current strategic priorities, however, we may not be the best long-term holder of this business”.
Sources now tell CNBC that bids for GreenSky are coming in at a much lower price point than the bank was hoping for.
According to the sources, KKR, Apollo Global Management, Sixth Street Partners, Warburg Pincus and Synchrony Bank were among the firms involved in the first round of bids, beginning early June. The bank plans to continue negotiations with a smaller group of bidders this week in the hopes of a better price, the sources add.
