Since the start of the year, Goldman Sachs has laid off around 3,000 employees, with the majority of terminations taking place in the Americas. Those affected have already received emails from the bank's human resources department regarding their severance packages, while others are still waiting to hear.
Under state laws, laid-off staff in Goldman's New York City headquarters will remain on the payroll until mid-April, while those in Utah will stay on until the end of February. During this period, they will continue to receive their base salary and benefits. When the active employment period ends, they will be paid severance at their current base salary, with fewer deductions. The length of the severance payment will depend on the employee's tenure.
Goldman Sachs is also offering outplacement services through Lee Hecht Harrison, and laid-off workers will not receive performance bonuses for last year's work. The bank is reviewing expenses across the firm, including the costs of its private jets.
The layoffs come as revenues decline due to a slowdown in M&A and IPOs across Wall Street. Goldman Sachs declined to comment on the details of the severance and the geographic breakdown of the layoffs, but a spokesperson said that the majority of employees have been communicated with.
A single mom from Salt Lake City, Utah, who was among those laid off by Goldman on Wednesday, expressed her fear and uncertainty regarding the severance package. She said they were told they would receive an email but have not received any letters or communication yet. The mom was shocked and devastated as she had moved from Florida six months ago for the job. She expressed her frustration that if the company had known they were not doing well, they should not have had such a large hiring wave.