Comments (63)

  • Investment Manager in HF - Other

Reading the article it seems unlikely, but all the quotes from GS are going to be positive PR oriented. The article makes it sound more like reinstating their standard performance review process that cuts the low performers (that was suspended during COVID) rather than some large layoffs. That being said, they do mention slowing down hiring and the IB revenues are down a ton. I would think the hit to their future recruiting of rescinding offers would be higher than paying a few extra new hires, but I don't make those decisions at GS

  • Associate 1 in PE - Other

Agree - however, wanted to add that they actually were laying off quite a few people in mid 2020 due to Covid (before they realized what a deal spree was just about to happen).

AndyLouis, what's your opinion? Comment below:
[Comment removed by mod team]
  • PM in HF - Other

Once apon a time at the Goldman realm, the WFH apostates are under guillotine 

Miracle1111, what's your opinion? Comment below:

Does that mean GS never really cared about the healthcare group that walked out a couple of weeks ago because it just saved them the trouble of laying them off anyway?

nycmadison, what's your opinion? Comment below:

Goldman typically revisits its head count every year, letting go of employees based on performance and to match the bank's needs. It had paused that program during the pandemic, which also coincided with a record period for deal-making, when bankers complained of overwork. The program typically lays off 1 to 5 percent of workers; this round of layoffs is likely to be at the lower end of that range, a person familiar with the matter said.

So pretty much a nothing-burger? 2023 budgets are being made and this is a standard end-of-year, cut the lowest performers exercise.

  • Associate 3 in IB-M&A

it's "firmwide" so if you are a total deadweight analyst and do no work / refuse to come into the office, you could be on the chopping block

that said GS knows analysts go away after 2 years so they will usually not cut them. Typically these are focused on VP+ who do not produce. also, again, firmwide includes a lot more than just IB so plenty of MO/BO bloat to cut 

  • Associate 2 in IB-M&A

Indeed. This is just clickbait that is based on standard events happening at companies of high interest. Of course everyone will start speculating wildly and drawing insane conclusions. Welcome to modern journalism.

  • Analyst 2 in AM - FI

Doubt that. You think they would allocate company resources to hiring new grads and shit just to rescind before they even start? That would be a shitty look and an easy way to get flamed by the media which seems to already have a vendetta against them. Nah, they are pushing out high cost low value employees and the shitty bottom bucket juniors to make room for those kids.

  • Analyst 1 in PE - LBOs

Agreed here. Would be a very bad play for them reputationally. If they do rescind, students will be more likely to sign with compeititors in the future.

  • Associate 3 in IB-M&A

Yeah this is correct. There is no way they are rescinding analyst offers unless the market goes 2007-level sideways and banks start blowing up (not likely given current capital and stress testing requirements, guess regulations are good for something)

Market-related class size cuts were made before return offers went out. It's awful PR to rescind college-level offers, analysts are pennies on a dollar, and they will work from mid 2023-2025; hard to predict what the market will do and they will very likely need all those bodies in those two years. Could there be more cuts? absolutely, but will be concentrated on underperforming people especially at the senior level.

Source: On BB recruiting team

  • Intern in IB - Gen

Following and curious as to whether this decision would affect incoming analyst 2023 offers as well.

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  • Associate 1 in PE - LBOs

Everyone who was in banking the last two years know that every single bank was hiring anyone they could get their hands on, including people with 0 IB experience coming in as senior analysts / associates that frankly did not have what it takes to do well in this job. Some of these people figured it out and are now doing well, but there are some that just frankly suck and I think we'll see a lot of bottom performers getting cut. I wouldn't be worried if you're halfway decent, but every bank knows there's a handful of people in the bullpen that have no right to be there.

Sleds-N-Spreads, what's your opinion? Comment below:

This. Sure, deal-flow is likely to slow down which could be a contributor. That said, banks over-hired and will look to trim the fat. I'd anticipate deal teams running a bit leaner than "normal" years as firms sit on their hands and see how the next 6-12 months shake out. 

Buckle up ladies and gents.  

Crypto Jones, what's your opinion? Comment below:

A lot of this is just PR setup to fire people that are pushing back against the "back to office" policies, to give them a clean way of getting rid of them due to "performance". 
Also Associate 1 in PE - LBOs Anonymous is correct as well, lots of overhiring of people who never got good that need to be thrown back. 

Konkey-Dong, what's your opinion? Comment below:

I expect enough drop off in M&A  (equity values lower) and S&T drop off (fewer origination and markets flat for a long time) that the commercial banking overlord will want to cut meaningful salaries (Directors and above) by December/January.  Stay sharp, there are likely to be lots of new firms/spins-off  over the next 18-36 months as banks fight over revenues and teams leave.  For junior and mid-levels who want a career in banking, with partnership/ownership (where the real money is) this can be an opportunity to get closer to real meaningful ownership opportunities.

  • Intern in IB - Gen

Agreed. It's going to be an interesting time these next 2 years. While I expect the Fed to cave and go back to cutting rates, I think they'll crash this house of cards economy before that. Buckle up folks. It ain't gonna be a pretty ride

  • Intern in IB - Cov

Do you think RX will pickup in the coming months? Interned in RX this summer, and there was very little deal flow. Going back next year so just wondering 

Konkey-Dong, what's your opinion? Comment below:

Rx is seeing a slight pickup since July.  A few one offs w/o heavy industry trends.  Hiring up is starting low key.  Should start to see volume come March and good dealflow by summer if Fed stays resolute.

A lot of Rx demand will result from how hawkish on inflation the Fed stays.  If it buckles then Rx will be moderate to low.

  • Associate 1 in PE - Growth

GS London / Frankfurt firing has started. 2 VPs and 3 Analysts from my team were kicked.

  • Analyst 1 in IB-M&A

At gs ny.  Can confirm a few of my analyst class key cards didn't work this morning.  Saw security escort them to a lobby waiting area.

  • Intern in AM - Other

I don't buy the story, locking their key cards and having security escort them out marks GS as enemy number one for these juniors. That's a memory that's gonna stick for a long time. Way better to save face in person

high hopes, what's your opinion? Comment below:

I know of an MD at GS (in IB) who received a package today… was apparently a superstar too. Young guy. Yikes

This was in nyc.

Did BAML poach him already 

  • VP in IB-M&A

It's a bloodbath, know multiple people who were let go.

Winter is coming. This is just the beginning and it only gets worse from here.

  • Managing Director in IB-M&A

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  • Intern in IB - Gen

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