Goldman Sachs could slash the bonuses of its roughly 3,000 investment bankers by 40% because the Wall Street giant grapples with an economic slowdown that has affected the complete financial sector, according to a broadcast report.
The large drop could be much higher than Goldman’s rivals including JPMorgan Chase, Citigroup and Bank of America – that are said to be considering 30% cuts. tThe Financial Times reported on Wednesday.
“I believe we’re going to be worse than Street,” a senior Goldman banker told the FT.
If implemented, the cuts can be the most important because the 2008 financial crisis.
“Goldman Sachs pay is set by the performance of the complete bank, not in every business area,” a Goldman spokesman said. “The compensation process is just not yet complete, so any discussion or prediction about specific numbers is premature.”
The prospect of sharp bonus cuts fueled fears that investment bankers could fire Goldman after the brand new 12 months.
![David Solomon](https://nypost.com/wp-content/uploads/sites/2/2022/12/david-solomon_62-12_46_17-PM-1.jpg?w=1024)
Goldman also plans to cut the bonus pool for its 400 partners by as much as 50%, Semafor news service reported last week.
Reduced bonuses come just after expected layoffs. Last week, Goldman CEO David Solomon said the corporate could eliminate no less than 400 items from loss-making retail banking operations, according to a report.
![The bank recorded a decrease in revenues in 2022.](https://nypost.com/wp-content/uploads/sites/2/2022/12/goldman-sachs_08.jpg?w=1024)
Goldman cut about 500 jobs in September, an early sign to Wall Street that economic conditions were deteriorating.
It has been a difficult 12 months for Wall Street’s investment banking divisions. JPMorgan saw a 47% year-on-year decline.
Earlier this week, reported Reuters that Citigroup was shedding 50 employees in its Europe, Middle East and Africa region after investment banking revenue fell greater than a fifth within the third quarter compared to the second quarter.
Citi’s investment banking revenue fell 64% year-over-year within the last quarter.
With postal wires