On June 16, according to media reports, Goldman Sachs revealed a signal at its monthly executive meeting that it would take more painful measures to cut costs.。

People familiar with the matter said that in order to accelerate its plan to cut costs by $1 billion, Goldman's management had to shift its focus to more small projects and more extensive layoffs.。

A spokesman for Goldman Sachs said: "In the current environment, we have repeatedly emphasized our focus on expense management and are implementing the $1 billion plan we set out at Investor Day to improve efficiency and generate returns for shareholders.。"

When Silicon Valley banks and signature banks were in hot water earlier this year, there was news that the banking turmoil was a blessing in disguise for Goldman Sachs CEO David Solomon (David Solomon) because it diverted attention from the company's woes。But now that the Silicon Valley banking incident has subsided, Goldman's plight is beginning to attract attention.。

Goldman's "belt-tightening" plan is divided into two main parts。

On the one hand, Goldman Sachs began to ask people within the company to reduce spending and reduce costs.。The company's employees used to be able to pay for subscriptions to websites that provided data and information, or to book a business trip and pay for expensive meals in order to meet a customer.。But now the related expenses need to be signed by senior management, and a trip needs to meet with multiple customers.。Reducing spending is not just for employees, and managers can't stay out of it。Managers have certain budget reduction targets that need to be implemented and achieved。

On the other hand, it is layoffs to reduce payroll expenses。Goldman Sachs announced in February that it was aiming to reduce payroll spending by $600 million, and President John Waldron said in early June that it could exceed that by the end of the year.。

The bank has laid off 3,700 employees since September.。Among them, about 3,200 jobs were cut in January, the largest since 2008.。At this stage, the bank is preparing to continue to lay off nearly 250 employees, including the most senior partners and managing directors.。But because the layoffs affect fewer than 250 employees worldwide, under U.S. law, Goldman Sachs does not have to give employees advance notice of the layoff plan.。Some employees say more employees are expected to be laid off this year as cost-cutting measures move forward。

Goldman Sachs is not the only company that is controlling costs, and many well-known banks have also set off a "wave of layoffs."。Morgan Stanley announced in early May that it would cut about 3,000 jobs in the second quarter of this year, a figure equivalent to 5% of its global workforce excluding wealth management.。Rhett Group plans to cut 10% of its workforce。HSBC plans to cut thousands of jobs worldwide。Standard Chartered also intends to carry out "targeted" layoffs in central Singapore, London and Hong Kong.。JPMorgan Chase also recently announced that it will cut about 500 jobs across the bank, mainly in technology and operations, across multiple divisions such as retail and commercial banking, asset and wealth management and investment banking.。In addition, Citigroup, UBS and others have layoff plans。

Behind Goldman's round of frugality is management becoming more pessimistic about the economic recovery and trading this year。Dealogic's preliminary data from April 1 to June 6 showed that investment banking revenue in the financial sector fell nearly 46 percent in the second quarter from a year earlier.。Goldman's investment banking revenue fell 52% year-on-year over the same period.。In 2022, Goldman's trading revenue was the second highest ever, at 256.$700 million, but now this business is also shrinking due to market volatility。To add insult to injury, the company's foray into retail banking was met with a "Waterloo," a rare and public failure of the bank.。

All along, Goldman is seen as a bellwether of Wall Street's wealth due to its perennial leadership in banking and trading。But now, the bank's financial woes have weakened its valuation.。According to Refintiv, Goldman's P / E ratio is 0% of its book value.97 times, trailing rivals Morgan Stanley and JPMorgan Chase, which are trading at 1.45 times and 1.33 times。

Investors are revisiting and evaluating what Goldman calls its strategy of "expanding asset management while consolidating its traditional trading pillars" and questioning whether it will bear fruit。

"Goldman's business is really highly cyclical.。UBS analyst Brennan Hawken said, "But there's no denying that they're facing headwinds right now."。It is clear to us that this is not temporary。"

For Goldman Sachs, layoffs and cost cuts are only a palliative and do not address the fundamental challenge it faces, its reliance on investment banking and trading。By contrast, Morgan Stanley's wealth-management profit provided a buffer against its weak trading.。

"It feels difficult and challenging now.。Waldron told investors at a meeting on June 1 that "we are running the company more carefully."。"Winter is here, how far is Goldman Sachs from" spring "?？