Goldman Sachs‘ newest cost-cutting initiative, internally nicknamed “Mission 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 delivery its managers to rising locales to assist develop expertise pipelines in areas the place the corporate is rising, because of the efforts of primarily junior-ranking workers.
Transferring managers to Dallas and Salt Lake Metropolis may additionally permit Goldman to capitalize on workplace area. The price of renting a business 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 observe to extend its present headcount of 4,600 workers within the space to five,000 by the point the workplace opens.
Residing and dealing outdoors of NYC additionally gives workers extra worth to their paychecks — NYC’s value of residing is 130% greater than the nationwide common, with a median lease of $7,749 per 30 days, per Payscale. In the meantime, Salt Lake Metropolis’s general value of residing is 10% greater than common, with a median lease of $1,944 per 30 days, and Dallas’ value of residing is 2% greater, with a median lease of $1,497 per 30 days.
As a part of Mission Voyage, Goldman Sachs is gearing to chop round 3% to five% of its 46,500-person workforce within the coming months. The Wall Road Journal reported earlier this week that Goldman will make cuts within the spring this yr, as an alternative of in September because the financial institution has accomplished in recent times.
In keeping with Enterprise Insider, Goldman divisional heads are at the moment figuring out who to chop and relocate. Some jobs which might be misplaced by way of cuts this spring can be backfilled with roles outdoors of New York in lower-cost locales like Dallas.
In the long run, Goldman seeks to cut back bills by $1.3 billion general by shedding some workers and transferring others to lower-cost places. The financial institution first voiced the target at its first-ever investor day in 2020, per Bloomberg.
Mission Voyage started within the fourth quarter of 2024 as a multi-year initiative to avoid wasting 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 deal with lowering the variety of vice presidents at Goldman. VPs, a bunch between associates and managing administrators, are a big and dear a part of the financial institution, with their ranks ballooning out far sufficient in recent times that VPs have been reporting to different VPs as an alternative of managing administrators, per BI.
Glassdoor knowledge exhibits {that a} Goldman VP can value the financial institution as much as $325,000 in base pay per yr. Third-year VPs can earn over $1 million in wage and bonuses, a Goldman headhunter instructed eFinancialCareers.
