GOLDMAN SACHS' TOUGH REVIEW OPENS DOOR FOR MORE JOB CUTS
US investment bank Goldman Sachs Group Inc. is adopting a performance review system that will grade up to 10% of its 39,000 employees as under-performers this year, according to an internal memo sent on Monday, potentially leading to more job cuts in 2021 than the bank has made in recent years, Elizabeth Dilts Marshall reported for Reuters on July 28, 2020.
Goldman Sachs’ new head of human resources, Bentley de Beyer, who joined the bank in January, is revamping its opaque performance review process to make it more transparent and determine what proportion of staff is put in each grouping, said bank spokeswoman Leslie Shribman.
The bank’s main goal is to let staff know where they stand as roughly 90% of the bank’s workforce works from home due to COVID-19 restrictions, said Shribman, who verified the contents of the memo seen by Reuters.
Goldman Sachs’ review changes are another sign that COVID-19 working restrictions are prompting some large corporations to overhaul their human resources policies. “The dynamics of today’s challenges underscore the need for more transparency in feedback and even stronger communication between our people and their managers,” Goldman Sachs Chief Executive David Solomon wrote in the memo to all staff. Goldman Sachs is notorious for its tough annual review, which typically paves the way for a cull of roughly 5% of staff, often for missing performance targets. The bank has said the cuts allow it to hire a steady stream of new, diverse talent, which has become a priority over the past year.