Goldman Sachs’ bankers get their marching orders as Wall Street starts to purge under-performers ~ Sept. 27, 2022

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Roughly a dozen investment bankers said their farewells to Goldman  Sachs on Friday.

2 of 6 Photos in Gallery America has entered a “precession,” a phrase Insider coined and previously defined as “an awkward, confusing phase in which some economic indicators seem to portend a recession, while others suggest things could turn out to be OK.”While tech companies are being hit hard by the precession, education, consultancy, and nonprofit companies are more likely to boomerang back from this downturn.The social and economic turmoil causing this precession has left many Americans feeling stressed about their physical, emotional, and financial health. This is why Insider spoke with business executives, hiring managers, career coaches, and economists to learn more about the job market and give suggestions to readers on how to navigate it. Read more: Layoffs, inflation, and stock market swings have Americans nervous. Here’s a guide to managing your career in an uncertain economy.12 career counselors reveal the industries where hiring is still hot for new college grads — even as layoffs mountThe steps that some companies took to react to the abortion decision could prove useful for crafting other policies Auto Rotation On

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If you don’t understand what’s happening in the job market right now …

America has entered a “precession,” a phrase Insider coined and previously defined as “an awkward, confusing phase in which some economic indicators seem to portend a recession, while others suggest things could turn out to be OK.”

While tech companies are being hit hard by the precession, education, consultancy, and nonprofit companies are more likely to boomerang back from this downturn.

The social and economic turmoil causing this precession has left many Americans feeling stressed about their physical, emotional, and financial health. This is why Insider spoke with business executives, hiring managers, career coaches, and economists to learn more about the job market and give suggestions to readers on how to navigate it. 

Read more: 

Layoffs, inflation, and stock market swings have Americans nervous. Here’s a guide to managing your career in an uncertain economy.

12 career counselors reveal the industries where hiring is still hot for new college grads — even as layoffs mount

The steps that some companies took to react to the abortion decision could prove useful for crafting other policies

Senior associates and vice presidents in Goldman’s tech, media, and telecommunications team were handed pink slips in a further sign of strain on a Wall Street apparatus that is hamstrung by depressed dealflow, and suffering from a slowing economy and stubbornly high inflation.

The cuts come after Goldman’s investment bank logged a 41% dip in year-over-year revenues in July. Denis Coleman, the bank’s chief financial officer, also reintroduced Goldman’s dreaded annual performance review, a process that helps the bank weed out underperforming individuals who are likely to be let go.

Click here for the full story from Insider’s Reed Alexander and myself.

This post first appeared in 10 Things on Wall Street, a newsletter by Insider that brings you all the biggest stories dominating the finance industry — delivered daily to your inbox. Sign up here. Download Insider’s app here.

Roughly a dozen investment bankers said their farewells to Goldman  Sachs on Friday.

If you don’t understand what’s happening in the job market right now …

America has entered a “precession,” a phrase Insider coined and previously defined as “an awkward, confusing phase in which some economic indicators seem to portend a recession, while others suggest things could turn out to be OK.”

While tech companies are being hit hard by the precession, education, consultancy, and nonprofit companies are more likely to boomerang back from this downturn.

The social and economic turmoil causing this precession has left many Americans feeling stressed about their physical, emotional, and financial health. This is why Insider spoke with business executives, hiring managers, career coaches, and economists to learn more about the job market and give suggestions to readers on how to navigate it. 

Read more: 

Layoffs, inflation, and stock market swings have Americans nervous. Here’s a guide to managing your career in an uncertain economy.

12 career counselors reveal the industries where hiring is still hot for new college grads — even as layoffs mount

The steps that some companies took to react to the abortion decision could prove useful for crafting other policies

Senior associates and vice presidents in Goldman’s tech, media, and telecommunications team were handed pink slips in a further sign of strain on a Wall Street apparatus that is hamstrung by depressed dealflow, and suffering from a slowing economy and stubbornly high inflation.

The cuts come after Goldman’s investment bank logged a 41% dip in year-over-year revenues in July. Denis Coleman, the bank’s chief financial officer, also reintroduced Goldman’s dreaded annual performance review, a process that helps the bank weed out underperforming individuals who are likely to be let go.

Click here for the full story from Insider’s Reed Alexander and myself.

This post first appeared in 10 Things on Wall Street, a newsletter by Insider that brings you all the biggest stories dominating the finance industry — delivered daily to your inbox. Sign up here. Download Insider’s app here.

1. Goldman Sachs has started wielding the axe at its investment bank. The cuts in the TMT division come on top of layoffs in the bank’s equity-capital-markets and leveraged-finance teams in Europe and ECM unit in Asia.

“Every year globally we conduct a strategic assessment of our resources and calibrate headcount to the current operating environment,” a spokesperson for the bank told Insider on Friday.

The job cuts are likely to echo across Wall Street, particularly within investment-banking divisions like capital markets and M&A advisory, bankers told me.

Bankers in leveraged finance will also be under the microscope as new deals struggle to gain any traction in today’s market conditions, a banker said. Lenders that underwrote billion-dollar financings for leveraged buyouts — like this $15 billion monster for software company Citrix — will likely wear huge losses because they’re offering the debt to investors at a significant discount.

“As far as layoffs I can’t see how LevFin is not impacted the most within capital-markets teams,” one banker said. “It’s a fickle, ‘boom and bust’ business.”

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