According to a report by Bloomberg News on Tuesday, which cited individuals familiar with the subject, Goldman Sachs has fired at least 25 bankers in Asia as a result of the volatility in capital markets, which is stifling dealmaking across all industries.
According to the report from Bloomberg, the job cuts affecting the bank’s equity capital markets, health care, and telecommunication, media, and technology teams in Asia primarily affected junior level bankers involved in deals in Greater China. The job cuts also affected teams in Asia that focused on telecommunication, media, and technology.
A spokeswoman for Goldman Sachs said that their company conducts an annual worldwide strategic evaluation of their resources and adjusts their workforce to reflect the most recent operational situation.
Before lockdowns and geopolitical crises decimated investment banking activity in the mainland, Goldman Sachs and its competitors had been hiring actively in an effort to grow their presence in China after the complete opening of the country’s securities business.
According to a person who is acquainted with the preparations, Reuters reported last week that the Wall Street powerhouse intended to slash employment as early as this month after delaying the yearly practise for two years during the epidemic.
According to the source who spoke with Reuters, Goldman Sachs will likely make cuts in 2022 that fall toward the lower end of the range of reductions that are typical for the firm, which is between 1% and 5% of its staff each year. The source also mentioned that staff reductions could begin as soon as this week.
At the end of June, the number of people employed by Goldman Sachs reached 47,000, which is a 15% increase over the previous year. A 1% decrease in personnel would result in the loss of around 500 bank employees.