Goldman Sachs may have 3900 underperformance this year or pave the way for major layoffs

 Goldman Sachs may have 3900 underperformance this year or pave the way for major layoffs

The analysis points out that on the one hand, Bentley de Beyer, head of human resources at Goldman Sachs, joined in January to improve the previously opaque performance appraisal process of Goldman Sachs. Novel coronavirus pneumonia, on the other hand, has led nearly 90% of Goldman Sachs to telecommuting at home. The main goal of the reform is to make employees aware of their ranking and position in the company.

It is reported that Goldman Sachs is known for its strict annual assessment of its employees, and it will lay off about 5% of its annual staff. This is different from Morgan Stanley, which is more used to making large-scale layoffs on a regular basis. For example, 1200 employees were laid off in 2015, and 1500 people were laid off last year. As of June 30, Goldman had not laid off employees in the first half of this year, and the actual number of employees increased by 10% compared with last year, according to the financial report.

Goldman Sachs reported good results in the second quarter, with net revenue of $13.3 billion, a year-on-year increase of 41%, significantly exceeding the market expectation of $9.71 billion; earnings per share was $6.26, higher than the market expected of $3.78. But Goldman may also be under pressure to cut staff and increase efficiency..

On Friday, the Malaysian government and Goldman Sachs reached a settlement on the case of one horse development company (1mdb). Goldman will pay a total of $3.9 billion in settlement, while Goldmans second quarter net profit totaled $2.42 billion. This means that the cash portion of the settlement to be paid by Goldman Sachs to the Malaysian government will have to take out all the net profits of the previous quarter. The market is worried that the settlement is likely to worsen for Goldman as the U.S. economy has not yet recovered and the level of bad debts may continue to soar.

Source: Wall Street news editor: Wang Xiaowu_ NF