Goldman Sachs has reportedly begun laying off staff as part of cost-cutting measures at the bank.

According to sources cited by Reuters, the company will let go of around 3,000 employees with roughly a third coming from the investment banking and global markets division. This translates to about six per cent of the bank’s 49,000-plus workforce, with Goldman adding more than 10,000 jobs since the Covid-19 pandemic.

The report notes that the layoffs began on Wednesday in Asia with over a dozen private banking staff cut from the Hong Kong, Singapore and China offices. A further eight were laid off from the research department in Hong Kong.

The cuts, which have been anticipated, represent the biggest slash of jobs at Goldman Sachs since the 2008 financial crisis.

While it would not confirm the numbers, Goldman Sachs issued a statement on Wednesday confirming the cuts. It said: "We know this is a difficult time for people leaving the firm. We're grateful for all our people’s contributions, and we're providing support to ease their transitions. Our focus now is to appropriately size the firm for the opportunities ahead of us in a challenging macroeconomic environment."

With a recession looming, major banks are in the process of cutting around 5,000 staff including at Morgan Stanley, where it has cut around two per cent of its workforce (1,600 people). HSBC meanwhile (which on Thursday saw the European Court of Justice uphold the annulment of a €33.6 million antitrust fine) is reportedly cutting around 200 staff.

In a separate report from the Financial Times, the job cuts at Goldman Sachs will be followed by a broader spending review of corporate expenses as part of a wider review of costs.

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