Goldman Sachs‘ newest cost-cutting initiative, internally nicknamed “Undertaking Voyage,” will ask choose managers to maneuver from central hubs just like the financial institution’s downtown New York Metropolis workplace to rising places like Salt Lake Metropolis and Dallas — or go away the firm.
In keeping with a Bloomberg report, the funding financial institution is transport its managers to rising locales to assist develop expertise pipelines in areas the place the corporate is rising, due to the efforts of primarily junior-ranking workers.
Shifting managers to Dallas and Salt Lake Metropolis may additionally permit Goldman to capitalize on workplace area. The price of renting a industrial workplace constructing in Manhattan was about $80 per sq. foot, in comparison with round $26 per sq. foot for Salt Lake Metropolis and Dallas.
In the meantime, Goldman is constructing a $500 million campus in Dallas in 2028 and is on monitor to extend its present headcount of 4,600 workers within the space to five,000 by the point the workplace opens.
Dwelling and dealing exterior of NYC additionally supplies workers extra worth to their paychecks — NYC’s price of dwelling is 130% increased than the nationwide common, with a median hire of $7,749 monthly, per Payscale. In the meantime, Salt Lake Metropolis’s total price of dwelling is 10% increased than common, with a median hire of $1,944 monthly, and Dallas’ price of dwelling is 2% increased, with a median hire of $1,497 monthly.
As a part of Undertaking Voyage, Goldman Sachs is gearing to chop round 3% to five% of its 46,500-person workforce within the coming months. The Wall Avenue Journal reported earlier this week that Goldman will make cuts within the spring this 12 months, as a substitute of in September because the financial institution has achieved lately.
In keeping with Enterprise Insider, Goldman divisional heads are presently figuring out who to chop and relocate. Some jobs which might be misplaced by way of cuts this spring can be backfilled with roles exterior of New York in lower-cost locales like Dallas.
In the long run, Goldman seeks to cut back bills by $1.3 billion total by shedding some workers and shifting others to lower-cost places. The financial institution first voiced the target at its first-ever investor day in 2020, per Bloomberg.
Undertaking Voyage started within the fourth quarter of 2024 as a multi-year initiative to save lots of the corporate cash, per BI. The layoff and relocation plan impacts a number of divisions throughout the financial institution, together with international banking and markets, engineering, advertising and marketing, and operations.
In keeping with the WSJ, the layoffs will give attention to lowering the variety of vice presidents at Goldman. VPs, a bunch between associates and managing administrators, are a big and expensive a part of the financial institution, with their ranks ballooning out far sufficient lately that VPs have been reporting to different VPs as a substitute of managing administrators, per BI.
Glassdoor information reveals {that a} Goldman VP can price the financial institution as much as $325,000 in base pay per 12 months. Third-year VPs can earn over $1 million in wage and bonuses, a Goldman headhunter informed eFinancialCareers.
