Newly laid-off Goldman Sachs employees are looking for headhunters after they lost their jobs during the company’s largest restructuring in over a decade. The slow global economy and a lackluster global economy will make it difficult to find comparable positions, sources claimed.
Goldman increased the number of employees being laid off on Wednesday as part of a massive cost-cutting effort. Around a third were from the global markets and investment banking divisions, according to a source.
Rival Wall Street giants are also making job cuts as global banks brace for recession. If deal-making remains slow, wider and deeper cuts will be made across the sector.
At most, 5,000 are in danger of being laid off by various banks. Morgan Stanley, which is a bank that employs around 3,200 people, has also cut around 2%, or 1,600, according to a source. Sources previously informed Reuters that HSBC is shedding at most 200.
Goldman’s long-awaited job cull follows an aggressive recruitment campaign during the pandemic that saw its total headcount reach 49,000.
However, spiraling inflation as well as rising geopolitical tensions following the Ukraine war has led to a dramatic decline in certain investment banking activities. This is forcing bank chiefs who are cost-conscious to plan for tighter times.
Arnaldo Oliviera, chief executive and founder of Orion Executive Search International said that the downsizing of banks has pushed hundreds out of bankers and increased competition in local jobs markets.
No doubt, everyone at banks is nervous. He said that bankers working at the managing director level have been let go in recent days.
One source familiar with the situation said that some of Goldman’s affected people are in touch with investment banking recruiters and executive search firms, while others seek opportunities through LinkedIn, an online professional network.
Seth Johnson is an Investment Banking Compliance Officer based in Salt Lake City (UT). He wrote this on LinkedIn: “My position was among those impacted today by Goldman Sachs’ large-scale reduction. Although I won’t be able to relive many of the things that I loved about my previous role, I am optimistic for the future.
Johnson was employed by Goldman Sachs more than six years ago and declined to comment.
Goldman cut its staff on Wednesday. The news spread around the globe. Goldman said that it recognized the difficulties faced by those who are moving forward.
We know that this can be a hard time for those who are leaving the bank. “We’re thankful for the contributions of all our people, and we provide support to ease their transitions,” Reuters saw from Tony Fratto (the bank’s global chief of communications) the memo.
It declined to comment about dozens of LinkedIn postings by some of its fired workers.
Oliveira stated that some bankers have approached him to find other jobs.
He said, “They even consider opportunities outside banks like M&A Advisory or Private Equity space.”
London’s second investment bank headhunter stated that having Goldman Sachs on your resume will be “always helpful”, but senior bankers would find it more difficult to get a job.
The headhunter stated that junior and middle-ranking bankers can pivot to tech and buy-side positions. Dealmakers who have experience with private equity are also in demand, as this sector is expected to rise first.
Shilpi Soni (a Dallas-based software engineer) wrote that she came from a rural origin and it was a rollercoaster ride to get here. She had been with the bank for 19 months.
Being laid off is a terrible thing, knowing where I came from. However, this is not the end of my American journey.