Sources close to Goldman Sachs told the New York Post that more departures are likely on the horizon. This year’s annual bonuses will be so “light” that employees will quit on their own, company insiders have claimed. The company laid off 3,200 employees on Wednesday as part of a cost-cutting effort. Something is loading.
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After cutting more than 3,000 jobs on Wednesday, Goldman Sachs plans to oust about 800 more employees in a less direct way, according to company insiders.
Another round of employees are expected to quit in the coming weeks after Goldman Sachs issues annual bonuses, according to sources close to the company who spoke to the New York Post. Upcoming bonuses are expected to be “so meager that disgusted recipients will pack up and leave,” the sources told the Post.
“People are expected to quit the following week,” a source told the Post.
The move would encourage already discouraged employees to leave the company without having to be fired by supervisors, part of an existing Wall Street strategy to evict employees previously called “termination by process”, a term coined by media mogul Barry Diller.
A Goldman employee described office morale as “very low” and said his colleagues were “very depressed”, according to the New York Post report. The company’s recent layoffs are part of a cost-cutting effort that has affected 3,200 positions in New York, Dallas, Chicago, Salt Lake City and London.
Some workers were reportedly asked to attend business meetings at which they were fired and, in some cases, given just 30 minutes to leave, according to the New York Post.
A Goldman Sachs spokesperson addressed the layoffs in a statement to Insider: “We know this is a difficult time for people leaving the company. We are grateful for all of the contributions of our employees and we bring them support to facilitate their transitions. Our focus now is on sizing the business appropriately for the opportunities presented to us in a challenging macroeconomic environment.”