Goldman Sachs Replaces Big Annual Layoff With Targeted Rolling Cuts

Goldman Sachs has traditionally culled underperforming employees in a concentrated annual exercise as part of its routine talent and cost management. The shift to targeted rolling cuts by division delegates workforce decisions to business-line heads, allowing them to adjust staffing according to operational needs and market conditions. The move could serve as a bellwether for Wall Street employment practices.

Goldman Sachs has decided to scrap a large, one-time annual layoff and instead allow business-line heads to set individual timetables. The cuts are expected to begin in April and continue through the summer. The company has not disclosed the number or proportion of employees affected, severance amounts or an exact end date. The aim is to make annual talent management more flexible and targeted.