Goldman Sachs to Contribute to America's Unemployment Because of a Consolidation Slowdown

 The very politically influential company is hurting, and it's taking it out on their employees:

Goldman Sachs will lay off as many as 3,200 employees this week as an uncertain economic and market climate pushes the bank to hunt for cost savings, according to a person familiar with the matter.

More than a third of the job cuts are expected to be from the firm’s trading and banking units, the person said. Like its Wall Street rivals, Goldman Sachs has been hit by a slump in global dealmaking activity as fewer companies merge or seek to raise capital.

Hiring for roles in other areas will continue and the new analyst class will start later this year as planned, the person added added. News of the layoffs was first reported by Bloomberg.

The bank declined to comment.

Goldman Sachs (GS) had 49,100 employees at the end of the third quarter. It added thousands of jobs to its headcount during the pandemic recovery as markets and investment banking boomed.

And what caused this?

But the mood on Wall Street has deteriorated since the Federal Reserve and other central banks started aggressively raising borrowing costs in a bid to rein in inflation. Companies are looking to conserve cash in case interest rate hikes trigger a global recession, and the appetite for mergers and acquisitions and initial public offerings has dried up.

That’s hurt companies like Goldman Sachs that advise on these transactions. The bank’s revenue during the third quarter of 2022 dropped 12% from a year ago. Investment banking revenue plunged 57% year-over-year.

Yep; because there's a slowdown to every company becoming one "OmniCorp" is giving Goldman Sachs the sad face.