Goldman Sachs has announced plans to lay off a significant number of employees as part of its annual talent review.

The cuts, which are expected to affect hundreds of positions across various departments, come amid a challenging economic environment and ongoing efforts to streamline operations.

While the exact number of job cuts remains undisclosed, sources within the company reported by the Reuters suggest that the layoffs could impact between 3 and 4 per cent of Goldman Sachs' global workforce. This would translate to a reduction of approximately 1,300 employees.

The decision to implement layoffs is a departure from recent years, when Goldman Sachs had largely avoided significant staff reductions. However, the current economic climate, characterised by rising interest rates, geopolitical tensions, and a slowdown in dealmaking activity, has forced the bank to reassess its staffing levels and identify areas where cost-cutting measures can be implemented.

The layoffs are also part of Goldman Sachs' ongoing efforts to improve efficiency and enhance its competitive position. By reducing its workforce, the bank aims to streamline operations, lower costs, and better allocate resources to high-growth areas.

The news of the layoffs has come as a shock to many employees and industry observers, who had expected the bank to maintain a relatively stable workforce. However, Goldman Sachs has emphasised that the cuts are a necessary step to ensure the bank's long-term success and competitiveness.

In a statement, a Goldman Sachs spokesperson said, "We are committed to building a stronger, more agile organisation that is well-positioned to capitalise on future opportunities. These layoffs are a difficult but necessary decision, and we are providing support to affected employees during this transition."

The layoffs are expected to take place over the coming weeks and months, and it remains to be seen how they will impact Goldman Sachs' overall performance. While the cuts may lead to short-term challenges, the bank is hoping that they will ultimately pay off in the form of improved efficiency, reduced costs, and enhanced profitability.

---