Next month, Goldman Sachs plans to make further job layoffs, according to a report

According to Bloomberg, which cited CEO David Solomon's year-end address to staff, Goldman Sachs (NYSE:GS) plans to start a new round of layoffs in the coming weeks as the Wall Street business deals with tighter monetary conditions and decreasing economic activity.

While conversations are still ongoing, he stated, "We are undertaking a rigorous analysis and we think our workforce reductions will take place in the first half of January." "We need to move forward with care and manage our resources prudently," he continued.

In order to counteract declining profit and revenue, Semafor had earlier this month indicated that the company may eliminate up to 8% of its employees, or 4,000 jobs, but the actual figure may be lower. Goldman's (GS) headcount increased by 4% from June 30 to 49,100 as of September 30, 2022.

While Wall Street firms generally fire underperforming bankers at the beginning of the year, Goldman (GS) is anticipated to make more cutbacks than its competitors as it works to meet its profit goals. The company has raised its 14%–16% medium-term return on equity target from its prior aim of 13% in February. Its ROE was 12.2% for the first nine months of 2022.

Analysts anticipate Goldman (GS) will earn close to $48 billion in revenue this year, which would be its second-highest total and would only fall short of the $59 billion it earned in 2021. From $59.45 in 2021, it is anticipated to earn $33.71 per share in 2022, a 43% decrease.

Its cash-guzzling move into consumer banking contributed in part to the profits' decline. By integrating Marcus and other consumer banking activities into its Asset & Wealth management segment, Goldman (GS) effectively scaled back its business objectives in October.

The bank is deepening its relationships with Apple (AAPL), according to a Wall Street Journal report from last week, to support its consumer-focused business.