The world’s biggest investment banks have slashed the sums of money they spend on paying their staff, following a sharp decline in dealmaking.
Goldman Sachs cut the sums of money it spends on paying staff in its in London offices by 59 per cent over the first half of 2022, the investment bank’s financial results show.
Goldman’s pay cuts for staff in its London offices come as the New York bank slashed its total expenditure on compensation for staff by 30 per cent compared to the previous year.
The investment bank’s lower staff costs saw Goldman Sachs’ operating expenses drop 11 per cent from Q2 2021 to Q2 2022.
The cuts came after Goldman Sachs’ net earnings dropped 48 per cent over the same period of time, due to a drop in global dealmaking activity
Morgan Stanley also cut pay within its investment bank by 13.6 per cent after its net revenues dropped 11 per cent in the second quarter of 2022.