A new year usually brings new opportunities.for some financial expertthey had no choice.
Layoffs swept Wall Street this week, affecting thousands of employees at the world’s largest banking institutions.
Goldman Sachs cut 3,000 jobs and BlackRock laid off up to 500 employees. But the big question is, why now?
Last year was a year of record-high inflation, a tight job market, global conflict, rising interest rates and an overall disappointment for markets. As a result, a recession is almost inevitable, and companies in almost every industry are scrambling to right-size their operations and mitigate future losses.
The layoffs at Goldman and BlackRock account for a relatively small portion of their total workforce (6.5% and 3%, respectively), but they are reminiscent of the annual pre-pandemic cutouts the industry was once accustomed to.
Layoffs are not unique to the banking industry. Layoffs at big tech companies have also shaken the foundations of a normally credible industry.