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Goldman Sachs to cut at least 400 in retail banking unit: report

Goldman Sachs is aiming to cut at least a few hundred more jobs, Bloomberg Law reported Monday, citing people familiar with the matter.

The bank is developing plans that could eliminate at least 400 positions from its loss-making retail banking operations, according to the report.

Goldman Sachs did not immediately respond to a request for comment from Reuters.

The company cut about 500 jobs in September, an early signal to Wall Street that economic conditions were deteriorating.

Global banks, including Morgan Stanley and Citigroup Inc, have cut staff in recent months as the trading boom on Wall Street has died down due to high interest rates and soaring inflation.

Also on Monday, Goldman said it planned to stop issuing unsecured consumer loans, a source familiar with the move told Reuters, in another sign the bank is pulling out of its consumer business.

The move came after Goldman signaled it was scaling back ambitions for loss-making consumer unit Marcus in October. Marcus moved into the bank’s wealth management arm as part of a reorganization of the company’s major business units.

Goldman launched Marcus in 2016 as an online platform offering personal loans and savings accounts to retail customers. While Marcus was launched to appeal to mass market customers, it struggled to gain traction or introduce a checking account.

The firm attracted $110 billion in deposits, issued about $19 billion in loans and had more than 15 million active customers, according to the company’s third-quarter results. The online savings account offers a 3% interest rate, according to Marcus’ website.

Goldman will also stop beta testing for its current employee account, the source said. But the savings account will continue to exist as it is an important source of funding for the business, the source added.

New York Post

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