NEW YORK: U.S. investment bank Goldman Sachs Group Inc is adopting a performance review system that will grade up to 10per cent 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.
"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 5per cent 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.
Despite a tough economic environment caused by pandemic shutdowns, Goldman Sachs reported a 41per cent jump in quarterly revenue earlier this month on strong trading and investment banking income.