Goldman Sachs allegedly carried out layoffs by inviting employees to attend fake business meetings and telling them they were losing their jobs.
The New York Post reports the banking giant has cut 3,200 bankers, who comprise 6.5 percent of its headcount.
It has been claimed staffers received calendar invites for meetings on Wednesday morning, January 11.
When they attended the meetings – some of which were as early as 7.30am – they were told they were leaving the company.
Sources say some junior bankers were only allowed 30 minutes to gather their things and leave.
A source said one coworker was sacked after coming early that day for a meeting “put on his calendar under false pretenses.”
Roles were axed from New York, Dallas, Chicago, Salt Lake City, and London, where “there were a lot of tears.”
It was reported that several senior-level personnel were informed about their roles earlier in the week.
But many junior employees were “cut with little fanfare” on Wednesday.
CEO David Solomon alerted employees about the impending layoffs last month.
He reportedly blamed the reduction on reasons such as “tightening monetary conditions” that are impeding economic development.
Workers fired from the New York headquarters will be compensated for 90 days before receiving severance pay, as mandated by the state’s WARN Act.
Other states have a 60-day notice period.
In September, Goldman cut senior associates and vice presidents from its technology, media, and telecommunications unit.
It also laid off workers in its consumer retail, healthcare, and industrial segments.
These redundancies followed a 41 percent drop in revenue from its investment banking division.
CFO Denis Coleman said at the time five percent of poor performers would be let go, and that recruiting would be slowed.
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A Goldman Sachs spokesperson said: “We know this is a difficult time for people leaving the firm.
“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.”