Goldman Sachs cutting hundreds of jobs, the impact of climate change on the business world

Goldman Sachs is slated to eliminate several hundred jobs this month in response to lower than expected deal volume.

CNBC reports:

The bank is reinstating a tradition of annual employee culls, which have historically targeted between 1% and 5% of lower performers, in positions across the firm, according to a person with direct knowledge of the situation.

At the lower end of that range, which is the size of the expected cull, that means several hundred job cuts at the New York-based firm, which had 47,000 employees at midyear.

Goldman isn’t likely to be the only bank to cut workers. Before the pandemic, Wall Street firms typically laid off their bottom performers in the months after Labor Day and before bonuses are paid out. The practice was put on pause during the last few years amid a hiring boom.

Goldman declined to comment on the record about its plans. The timing of the cuts was reported earlier by the New York Times.

Though the story mentions that Wall Street firms typically lay off some employees after Labor Day every year, the fact that the practice hasn’t regularly been done since the onset of the COVID-19 pandemic will certainly be a shock to the system for some.