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December 06, 2022 at 10:53 AM
Goldman Sachs Group Inc. Chief Executive Officer David Solomon struck a downbeat note about the economic outlook and said smaller bonuses and even potential job cuts should come as no surprise.
“You have to assume that we have some bumpy times ahead,” Solomon said in a Bloomberg Television interview Tuesday. “You have to be a little more cautious with your financial resources, with your sizing and footprint of the organization.”
That can mean a heightened focus on costs and a slowdown in hiring, which the bank has already undertaken. “That might also come from pruning in certain areas,” Solomon said.
Goldman’s business lines are closely linked to the economy, and the bank has forecast slowing growth ahead. That would mean the firm will have to make some tough decisions, Solomon said, especially since a soft landing is far from assured.
Solomon said the U.S. could see a recession in 2023, even though the firm’s economists say it could still avoid one.
“It shouldn’t be surprising to people — watching the performance of the business this year — that 2021 was an exceptional year,” the 60-year-old CEO said. “2022 is a different year, and so naturally compensation will be lower.”
