Goldman Sachs is planning to cut hundreds of consumer banking staff, according to a report in The Financial Times. The bank is reportedly cutting 1,000 staff from its consumer and small business divisions, by reducing the number of branches it operates across the globe. The cuts will take place across the board at Goldman’s consumer operations and come on top of an earlier announcement that it would be closing or selling some of its smaller mortgage units.
Goldman Sachs said in a statement that it was making changes to reduce costs and improve efficiency as part of a long-term plan to “become more effective.” The bank’s decision follows a recent announcement by Morgan Stanley that it would be cutting 300 jobs in London, while Barclays has said it will cut around 500 jobs.
Goldman Sachs has recently announced that it will be cutting hundreds of consumer banking staff, to streamline the business. It is owned by Goldman Sachs Group Inc., one of the largest investment banks in the world. It has over 50,000 employees across six continents.
The company’s move comes as a result of a series of restructurings within the organization, including layoffs and job cuts. The company says that it needs to focus on its core businesses while also investing in new areas.
The company made $18 billion in revenue last year but lost $3 billion due to costs associated with the restructuring process. It should be noted that there are still many jobs at risk at Goldman Sachs although these figures do not necessarily represent an accurate reflection of how many people will lose their jobs as a result of this news.
Goldman Sachs, one of the world’s largest investment banks, is planning to lay off hundreds of employees in its consumer banking division. The cuts are expected to occur over the next few months and will affect about half of Goldman’s 9,000-person consumer banking workforce, according to a person familiar with the matter.
Goldman had been planning to cut between 300 and 400 people from its consumer banking enterprise in Europe as part of an effort to reduce costs and focus on more profitable areas like asset management, but also because of new regulations that could require it to move certain operations to Europe. The layoffs will take place across all countries where Goldman operates retail operations.
“We are taking this action as part of our efforts to better align our resources with client needs,” a spokesperson for Goldman said in an emailed statement. “We expect this reduction in headcount will increase our efficiency.”
Goldman Sachs is cutting hundreds of consumer banking staff in the U.S. and Europe, including 150 to 200 jobs in the U.S., according to a report from Bloomberg.
The cuts were part of a restructuring that included plans to shutter an additional three to five offices around the world and reduce its headcount by 10% over the next few years.
Goldman’s consumer bank has been hit hard by the new wave of technology companies entering the market for personal finance products like credit cards and loans. The company has also been dealing with regulatory scrutiny over its practices related to sales practices, mortgage lending, and other areas in recent years — including a $5 billion settlement with the Consumer Financial Protection Bureau over mortgage servicing complaints earlier this year — which has hurt its reputation among some consumers as an institution they can trust with their money.