Goldman's new review process may lead to more job cuts – Reuters

Goldman Sachs (GS +1.0%) is taking up a new performance review process that will classify up to 10% of its 39K employees as underperformers, Reuters reports, citing an internal memo.

Adopting such a system potentially could pave the way for the bank to increase the number of job cuts it will make next year.

Goldman is known for its tough annual review process, which typically leads to cutting ~5% of its staff.

Its new head of human resources, Bentley de Beyer, who started at Goldman in January, is aiming to make the review process more transparent, a company spokeswoman told Reuters.

The main goal is to let employees know where they stand and increase communication between managers and their staff as some 90% of the bank’s workforce works from home due to the pandemic.

Under the new system, 25% of staff will be graded “exceeds expectations, 65% will be classified as “fully meets expectations,” and 10% will be rated “partially meets expectations” in their December annual reviews.

The system also increases the number of formal performance check-ins between manager and employee, to at least three times a year starting in 2021.

Previously: Goldman sets aside less for employee pay as tech spending ramps up – CNBC (Oct. 17, 2019)


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