![]() He says the problem at Goldman, as elsewhere, is that projects proliferated during the good times. Many of those being dumped have simply been "treading water," says the recently ex-MD: "Some should have gone years ago, whilst others are just in the wrong division/location at the wrong time." In many cases, he says they haven't done "real hands-on work" for a decade and are expensive to keep around if they're not either conspicuously bringing in incremental revenue, or leading initiatives with "monetisable possibilities and enabling direct cost efficiencies." Goldman is thought to have 2,000 MDs in total the cull represents just 6% of the MD class. Given that each Goldman MD earns a salary alone of $400k, 125 cuts represents fixed cost savings of circa $50m. The MD layoffs come ahead of a new round of managing director promotions at Goldman in November 2023. "Now they're just cleaning up loose ends by taking out a bunch of MDs who should have gone in January but who were needed to help orchestrate the January cuts." "The 4k cuts in January needed some MDs to help coordinate them," he tells us. One MD who left the firm earlier this year says the new round of MD-focused layoffs is unsurprising. ![]() As flagged in late May, Goldman Sachs is indeed trimming some managing directors. 125 of them are going, meaning they account for half the current round of 250 cuts.
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