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Goldman Sachs Group Inc (GS.N) is planning to cut thousands of employees to navigate a difficult economic environment, a source familiar with the matter said.

The layoffs are the latest sign that cuts are accelerating across Wall Street as dealmaking dries up. Investment banking revenues have plunged this year amid a slowdown in mergers and share offerings, marking a stark reversal from a blockbuster 2021 when bankers received big pay bumps.

The bank is weighing a sharp cut to the annual bonus pool this year, a separate source familiar with the matter said. That contrasts with increases of 40% to 50% for top-performing investment bankers in 2021, Reuters reported in January, citing people with direct knowledge of the matter. The company’s stock fell 1.3% in afternoon trading alongside shares of JPMorgan & Chase Co and Morgan Stanley , which fell 0.6% and 1.3%, respectively.

 

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Rising interest rates are jeopardizing our solvency, so we gotta cut somewhere

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