Goldman Sachs focuses on tech amid workforce cuts

Goldman Sachs turned its focus to Platform Solutions growth in the fourth quarter of 2022 as the section saw a 171% increase in revenue year over year to $513 million to help offset its shrinking team. WHY IT MATTERS: Goldman reported a “disappointing” and “challenging” Q4 with a 25% year-over-year decline in total noninterest revenues of $39.7 billion, Chief Executive David Solomon said today during the bank’s Q4 earnings call. [caption id="attachment_221924" align="alignright" width="300"] Bloomberg [/caption] THE BIG PICTURE: The company reduced its staff by 6% in Q4, signaling a pullback from the more successful economic periods of 2020 and 2021, according to the bank’s earnings presentation. “This quarter, we completed our reorganization, which will further strengthen our core businesses, help us scale our growth platforms and improve efficiency,” Solomon said. “This is an important and purposeful evolution of our strategic journey.” BY THE NUMBERS: Goldman Sachs reported for Q4: Net revenues declined 10% YoY to $10 billion; Net income declined 66.3% YoY to $1.3 billion; and Communications and tech expenses grew 12% YoY to $481 million. STATE OF PLAY: Goldman is forecasting a cautious outlook for 2023 following low revenues during Q4, Solomon said, noting the “complex economic backdrop” was a major reason for the “challenging fourth-quarter performance. FLASHBACK: The acquisition of fintech GreenSky in Q2 and the subsequent Q3 launch of Goldman’s Platform Solutions segment — which consolidated fintech platforms across the bank — increased Goldman’s non-compensation expenses in Q4 despite a reduced headcount, according to the earnings presentation. The acquisition of Netherlands-based asset manager NN Investment Partners during Q2 2022 also contributed to the increase due to integration related costs, the company said. THE BOTTOM LINE: Moving forward, Goldman is planning to increase its fintech partnerships and use technology to be more productive with fewer employees. “For now, our priority is to strengthen our deposit franchise, card partnerships, and GreenSky,” Solomon said. “Our narrowed approach will allow us to reduce our foreign investment spend and rationalize expenses. We are very focused on developing a path toward profitability and platform solutions.” [stock_market_widget type="inline" template="generic" assets="GS" markup="Shares of {name} ({symbol}) are trading at {price} ({change_pct}) as of {last_update}" api="yf"]. Bank Automation Summit US 2023, taking place March 2-3 in Charlotte, is a crucial event on automation and automation technology in banking. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1673636584390.1673642239848.712&__hssc=41615677.3.1673642239848&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1673636584390.1673642239848.712&__hssc=41615677.3.1673642239848&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

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Goldman Sachs focuses on tech amid workforce cuts

The company reduced its headcount by 6% in Q4

Wells Fargo continues digital transformation

Buy-now-pay-later demand climbs among squeezed UK pensioners

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