WALL STREET WIPEOUT: Thousands of jobs cut on brutal day for finance
- It's a rough Wednesday on Wall Street, with Goldman Sachs and BlackRock cutting jobs.
- The cuts follow a difficult year for markets and dealmaking.
Happy New Year! Now collect your belongings.
Layoffs are happening across Wall Street on Wednesday, with Goldman Sachs starting to cut more than 3,000 staffers and BlackRock cutting up to 500.
The cuts follow a terrible year for markets, as Russia's invasion of Ukraine, inflation, and rate hikes sent markets into a tailspin. That led to a sharp drop in dealmaking and declining revenues and assets under management at top investment firms.
While they add up to thousands of staff members, the cuts represent a small chunk of total headcount: about 6.5% at Goldman Sachs and less than 3% at BlackRock. Still, they're a sharp contrast with previous years when Wall Street was booming. Goldman skipped an annual culling of staff in 2020 and 2021.
The layoffs aren't likely to be the last across Wall Street as other major firms adjust to the new economic reality.
Those who still have a job are likely to find out their bonus for 2022 in the coming weeks (Insider has a list of when each bank is expected to announce bonus payouts). Whenever they're communicated, many folks are expecting disappointment.
Insider's Alex Morrell and Carter Johnson wrote:
Usually, the announcement of bonus checks is eagerly awaited across Wall Street. But this winter, bonus season will be marked with trepidation — a fitting cap to a 2022 many dealmakers would rather soon forget.
Starting this week, the nation's biggest banks — from JPMorgan Chase to Goldman Sachs, Citi, Morgan Stanley, Bank of America, and Wells Fargo — will begin announcing year-end bonuses to employees.
But investment banking activity cratered last year following a pandemic-fueled glut of deals in 2021, and bankers across Wall Street are bracing for smaller bonuses to hit their accounts this January.
You can get more details on that here.
And you can get more details on the cuts at Goldman Sachs here and BlackRock here.
The cuts on Wall Street follow layoffs across the tech sector, with Amazon, Salesforce, Vimeo, Stitch Fix, and several startups cutting staff in 2023. In the media business, Insider's Lucia Moses reports that The Wall Street Journal and other Dow Jones properties are also cutting jobs.
Correction: January 11, 2023 — An earlier version of this story misidentified Russia's and Ukraine's roles in the invasion last year. Russia invaded Ukraine; Ukraine did not invade Russia.
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