By Sam Boughedda
In his end-of-year message to staff, Goldman Sachs (NYSE:GS) Chief Executive David Solomon revealed the firm is working on a new round of job cuts, Bloomberg reported.
Solomon reportedly wrote that Goldman Sachs is conducting a careful review, and although discussions are still ongoing, it anticipates a "headcount reduction will take place in the first half of January."
"There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity," Bloomberg quoted Solomon as saying. "For our leadership team, the focus is on preparing the firm to weather these headwinds."
The publication, citing people with knowledge of the matter, added that Goldman Sachs might look to eliminate up to 8% of its workforce, as many as 4,000 jobs, in order to mitigate a slump in profits and revenue. However, the number could be lower.
Furthermore, the company has reportedly asked top-level managers to identify potential cost-reduction targets, while no final job cut numbers have been determined.
In the end-of-year message, Solomon told staff that the company needs to "proceed with caution" and manage its resources wisely.