Goldman to begin layoffs next week
https://www.nytimes.com/2022/09/12/business/dealb…
With all the recent news surrounding GS, layoffs are now right on the horizon
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will this effect incoming analyst 2023, will i get my offer resinced???
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.
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).
Ignore the flair but I’m an incoming 2023 summer analyst in IBD Classic. Since revenues are down, how fucked is my class for returns? Anyone have any insight?
Yes
No. This is reinstating their performance reviews where they cut the very bottom performers across the firm. this is a standard practice
just to clarify the above comment in mid 2020 they were not laying off incoming analysts. deadweight VPs, sure
No but you may need to consider your spelling
your ass got chopped yet? or you're still safe?
Once apon a time at the Goldman realm, the WFH apostates are under guillotine
*apron
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?
So pretty much a nothing-burger? 2023 budgets are being made and this is a standard end-of-year, cut the lowest performers exercise.
Is this for analysts of MDs/Directors?
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
This is correct
.
They'll be much worse than expected. They aren't going to say that it's anything more serious than normal culling of the herd ahead of cuts
Yeah would guess all offers vulnerable
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.
Keep thinking that :)
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.
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
Following and curious as to whether this decision would affect incoming analyst 2023 offers as well.
I take it i shouldnt focus my lateral efforts towards GS then ? Lol
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.
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.
If you’re not bottom bucket, a mid-tier VP or D then you’re chilling
quite astute actually, While being mid bucket and above essentially means that you are safe from any kind of layoff as a junior, the bar is a little bit higher for VPs and directors
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.
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.
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
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
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.
In these times it's important to be loyal to people, not companies.
GS London / Frankfurt firing has started. 2 VPs and 3 Analysts from my team were kicked.
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.
What the hell
Just the non targets
Can anyone confirm? Also are there specific industries that are downsizing more than others?
Jesus that's fucking cold. Can't even tell them straight up they're fired. Pussy ass coward boss
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
Which class?
APAC cut's list already circulated today lol
And it hit the juniors..
Which city? SG or HK?
Have a friend there and not sure if i should check in with him
...
Bump, any additional info on this?
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.
What would cause a superstar MD to be laid off?
Poor politicking
Did BAML poach him already
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.
Any deets you can share?
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