Goldman Sachs cutting more than 3,000 jobs following cost review

Layoffs have reportedly begun at Goldman Sachs, as the global investment bank remains concerned about a further economic slowdown in 2023.

According to multiple news outlets, including Reuters, the company plans to eliminate more than 3,000 jobs in a bid to reduce costs.

Around a third of the cuts affect staff working for Goldman Sachs’ investment banking and global markets division.

A person familiar with the matter told CNBC on Jan. 9 that the size of the reduction is the result of internal discussions between business heads and top management at the bank throughout December.

Reports claim that the company employed a global workforce of more than 49,000 at the end of the third quarter.

Canadian impact

While a number of employees at Goldman Sachs’ China, Hong Kong, and Singapore offices have reportedly been let go, it remains unclear if Canadian workers are affected by the reduction.

In addition to the layoffs, Reuters claims that the global investment bank is cutting its annual bonus payments to reflect current market conditions.

Payouts for staff this year are expected to fall roughly 40 per cent.

Major companies kicking off 2023 with mass layoffs

The layoffs at Goldman Sachs come as two North American tech giants scale back their staffing levels amid challenging economic conditions.

Amazon is eliminating more than 18,000 jobs, while Salesforce is cutting approximately 10 per cent of its workforce.

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• Layoffs in Canada

Termination agreements for Goldman Sachs employees

In Canada, non-unionized employees and senior executives at Goldman Sachs are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario and Alberta.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Rights to severance for provincially regulated employees
• Severance pay for federally regulated employees

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.