Goldman Sachs Group, Inc
CEO David Solomon, however, is not expected to conduct mass firings this January.
Instead, insiders suggest that employees performing below expectations are more likely to receive minimal year-end bonuses, potentially prompting them to leave voluntarily, the New York Post reports.
This approach differs from last year's strategy, where the bank dismissed underperformers before announcing compensation, saving the expense of bonuses for outgoing staff.
In 2023, major global banks eliminated over 60,000 positions collectively, marking one of the most substantial downsizing since the financial crisis.
Employees found some reassurance in Solomon's recent holiday audio message, which was noticeably more upbeat than the previous year's announcement of imminent layoffs.
Solomon expressed gratitude for the staff's dedication and optimism for an exciting and productive 2024 at Goldman Sachs.
Despite not predicting specific outcomes, he conveyed confidence in the firm's distinctive client services.
Management anticipates that lower-performing employees might depart following disappointing bonuses, aligning with their strategy of not extensively trimming the workforce.
Instead, they are hopeful for a market upswing and increased deal-making, requiring a substantial workforce.
There is some concern, however, that the firm might experience more resignations than desired, particularly among top performers, after a potentially lackluster bonus round.
Solomon has previously emphasized the importance of paying for performance, highlighting the firm's focus on rewarding high achievers. After multiple layoffs in 2023, retention of top talent is a significant concern, with fears that inadequate compensation might lead to losing valuable staff members.
Price Action: GS shares are trading higher by 0.80% at $386.01 on the last check Friday.
