Goldman CEO Solomon Says Job Cuts Are Coming Next Month

Goldman Sachs Group Inc. is working on a fresh round of job cuts that will be unveiled in a matter of weeks, Chief Executive Officer David Solomon said in his traditional year-end message to staff.

“We are conducting a careful review and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” Solomon said. “There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity. For our leadership team, the focus is on preparing the firm to weather these headwinds.”

The firm may seek to eliminate as much as 8% of its workforce, or up to 4,000 jobs, to contain a slump in profit and revenue, people with knowledge of the matter said earlier this month, although the final number could come in lower. Top managers have been asked to identify potential cost-reduction targets, and no final job-cut number has been determined, the people said, asking not to be identified discussing internal deliberations.

A spokesperson for the New York-based company declined to comment.

“We need to proceed with caution and manage our resources wisely,” Solomon said in his message.