Goldman Sachs Group Inc.’s international head says that the bank’s recent job cuts have resized its footprint for the current economic environment and it will continue to hire at all levels of the firm.
“We’ve sized the firm to suit what we think the outlook will be,” Richard Gnodde said in a Bloomberg Television interview at the World Economic Forum in Davos on Thursday. “But of course you have to be nimble.”
He said the firm will adapt to the environment but it continues to hire people and expects to add more than 3,000 graduates this year as well as more selectively at all levels of the firm.
The industrywide slowdown and threat of a recession later this year pushed the bank’s leaders to ax as many as 3,200 jobs last week. The firm’s shares slumped 6.4% on Tuesday after it reported fourth-quarter results, their biggest decline in a year.
Gnodde also said bonuses, reflecting overall performance, would be lower. “You have to take a long-term view and look through the cycle,” he said. “Over time it still offers terrific returns for our people.”
Like other Davos attendees, he struck a cautiously optimistic tone on the global economy, noting it appears that inflation has peaked. But he stressed there were plenty of challenges ahead.
“There are a lot of things to feel good about but we’re still climbing down the mountain here,” he said. “Navigating your way off the mountain is a challenge.”
This article was provided by Bloomberg News.