Goldman Sachs on Thursday began laying off its staff in a cost-cutting drive, with reports suggesting that around a third or 3,200 people are likely to be let go, which is said to be the largest among banks.

The firings, said to be brutal, are likely to affect most of the bank's major divisions, with its investment banking arm facing the deepest cuts, a source told Reuters earlier this month.

According to sources, some bankers were not being allowed to enter the building while others were asked to come into the conference room and asked to leave immediately and not even return to their desks.

"We're looking at expenses in every corner of the firm, so it's ridiculous to focus on any single segment or item," a spokesman told the BBC.

"We're grateful for all our people’s contributions, and we're providing support to ease their transitions. Our focus now is to appropriately size the firm for the opportunities ahead of us in a challenging macroeconomic environment."

A number of other banks are also letting go of their employees. Morgan Stanley has fired 1,600 employees while HSBC has let go of at least 200, according to sources quoted by Reuters.

In India, some ex-employees of Goldman Sachs took to social media on the lay off.

"Wow, this is truly a different way to start a year," wrote Shubam Sahu, a software engineer at the MNC bank in the Bengaluru office.

“It was my first job and my first experience in software development. While my time at GS was short, I am grateful that I had the chance to learn and grow in such a conducive environment,” he wrote on his Linkedin post.

Shilpi Soni, another software engineer from India employed in the Texas office of Goldman Sachs, remarked "how quickly life can turn upside down".

"I take pride in being the first person in my family to pursue a master's in a foreign country. I come from a rural family, so it has been one roller coaster of a journey, overcoming social and financial restrictions to come here," Soni wrote on Linkedin.

"Knowing from where I started, being laid off hurts. But I am still hopeful that this may not be the end of my journey here in the US. So, I have decided to keep fighting and make use of my limited time to find a new job," she said.

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First Published:Jan 12, 2023 11:39 PM IST