Over the past decades, Goldman Sachs has grown into the world’s most powerful investment bank, and one of the biggest reasons behind its success has been its ability to take decisive steps early. It may be about its investment decisions, adoption of new technology, or the possibility of bringing widespread changes in the management structure. Across all those issues, the bank has shown a remarkable alacrity to take tough decisions quickly and painlessly. The continued success of Goldman Sachs is the ultimate target. In a fresh development, it has emerged that the investment bank is now set to cull a record number of partners from the existing partnership.
It is believed that the Chief Executive Officer of Goldman Sachs David Solomon believes that many of the partnerships are bloated, and hence, a culling has become necessary. The news was first reported by one of the leading financial newspapers in the world on Wednesday. Many of the leading lights of the bank are all set to leave by the end of this year, and a new era is about to dawn on Goldman in 2020. Although this type of culling does take place at the bank from time to time, the scale of the cull this year is unheard of. According to reports, as many as a dozen partners who are currently working at Goldman Sachs are negotiating there exist packages with the bank, and all of them could quit by the end of this year. Solomon took over as the CEO of the bank in 2018 and has instituted a thorough review of Goldman’s business practices. He is also looking at ways to diversify the banks’ business further and move into retail facing sectors like cash management as well as credit cards.
Some of the key partners who are currently in discussions over their exits include chief technology executive Elisha Weisel and head of the research operation, Steven Strongin. The bank is trying to streamline its operations significantly over the next few months, and it is believed that a leaner partnership will only help the bank in the long term. In addition to that, Goldman Sachs is also making a big move towards improving the tech that is being used at the bank currently.