According to reports, Goldman Sachs will lay off hundreds of employees. According to sources, the layoffs at the financial investment firm could begin as soon as next week and affect employees across the board.

Goldman Sachs declined to comment, but did mention lower profits in its July earnings report.

“We have made the decision to slow hiring velocity,” the company’s chief financial officer, Denis Coleman, had said at the time.

As the economy deteriorates, the investment bank warned that it might have to cut costs.

It reported a 48 per cent drop in second-quarter profit as its clients deal with inflation, rising interest rates, the Coronavirus pandemic, and the Ukraine war. Its investment banking division generated $2.1 billion in revenue, a 41 per cent decrease from the previous year.

According to a source, the Wall Street titan typically cuts 1 per cent to 5 per cent of its underperforming employees each year, and the cuts in 2022 will likely be at the lower end of that range.

Coleman also said the firm is considering, “reinstating our annual performance review of our employee base at the end of the year, something that we suspended during the period of the pandemic for the most part and just being much more disciplined and focused on utilization efficiency of our human capital resources”.

“There is no question that the market environment has gotten more complicated and a combination of macroeconomic conditions and geopolitics is having a material impact on asset prices, market activity and confidence,” according Goldman Sachs Chief Executive David Solomon.

(Adapted from BusinessInsider.com)