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Goldman Sachs To Resume Job Cuts With 400 Layoffs – Report

Goldman Sachs Group is set to resume its planned job cuts months after halting the streamlining move during the COVID-19 pandemic, Bloomberg reported on Wednesday. The financial institution is planning to cut 400 jobs or roughly 1% of its workforce.

Goldman Sachs (GS) is the third US bank after Wells Fargo and Citigroup to resume layoffs. Shares of the bank closed 2.1% higher yesterday.

A Goldman Sachs’ spokesperson told Bloomberg, “At the outbreak of the pandemic, the firm announced that it would suspend any job reductions. The firm has made a decision to move forward with a modest number of layoffs.” (See GS stock analysis on TipRanks)

On Sept. 23, UBS analyst Brennan Hawken upgraded Goldman Sachs stock to Buy from Hold and raised the price target to $245 (21.9% upside potential) from $220 saying that the bank is “generating solid results in the current environment.” Hawken is expecting solid 4Q results from the company given the potential volatility from the upcoming US presidential election.

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 10 Buys and 5 Holds. The average price target of $247.64 implies upside potential of about 23.2% to current levels. Shares have slipped about 12.5% year-to-date.

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Amit Singh
Amit Singh jumped into the world of stock analysis and investing after completing his Post Graduate Diploma in Finance in 2009. Before joining TipRanks in 2020, he worked as an equity research analyst for eight years. With a keen eye for identifying strategic investment opportunities, his work entails evaluating stocks, building financial models, writing company-specific research reports, and identifying the overall financial worth of companies in the consumer staples and technology sectors. In 2017, Amit found a way to combine his expertise in evaluating companies with his passion for writing. He has also worked with the financial research firm Market Realist.

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