Proactive Investors - Goldman Sachs (NYSE:GS) management is set to take its cost-cutting measures to the next level as part of its bid to slash $1 billion in costs, including potential further job cuts.
According to a Reuters report citing four sources familiar with the matter, the company’s managing directors met this month and were told to accelerate their cost-cutting efforts.
One source told the publication that if revenues do not increase along with the cost-cutting measures, further layoffs are to be expected.
Goldman Sachs told Reuters in a statement: "We have repeatedly emphasized our focus on expense management in this environment, and are delivering on the $1 billion plan we laid out at investor day to drive efficiencies and deliver for shareholders.”
The financial service firm began its $1 billion cost-cutting initiative earlier this year, which includes slashing 3,200 jobs and reviewing all of its expenses in anticipation of a potential recession during 2023.
Goldman Sachs reported a first quarter revenue miss in April, struggling relative to its peers as it derives much of its revenue from trading on Wall Street and investment banking and as its attempt to launch a consumer banking arm largely failed.