As a sluggish deal market weighs on investment banking, Goldman Sachs Group Inc. is expected to lay off less than 250 jobs in the upcoming weeks, according to a source familiar with the situation.

According to the source, the departures could span a range of seniority levels and involve partners and managing directors. The Wall Street Journal first reported on the layoffs. The end of March saw 45,400 people working for Goldman.

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The action follows Goldman’s largest round of layoffs since the 2008 financial crisis, which saw it cut its personnel by approximately 3,200 in the first quarter. Last year, it also eliminated roughly 500 workers.

According to a second source, the bank has kept spending in check this year.

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As the Federal Reserve rapidly increased interest rates to contain inflation and the crisis in Ukraine obscured the economic outlook, investment banks were heavily hurt by a decline in dealmaking.

As part of its second round of layoffs in six months, rival Morgan Stanley planned to lay off approximately 3,000 workers in the second quarter, a source had earlier told Reuters. Additionally, Lazard Ltd. will also make a 10% reduction in staff.

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In a letter to investors in late February, Goldman Sachs Chief Financial Officer Denis Coleman stated that the bank intended to increase its efficiency ratio by cutting personnel, not replacing employees who leave, and reducing other expenses.

A payroll cut of $600 million was outlined in the plan.

In comparison to 68.7% at the end of March, Goldman established a 60% efficiency ratio target for the medium term. A lower efficiency ratio is preferred by banks as a sign of higher profitability.

The first quarter of 2023 had the lowest levels of global mergers and acquisitions in more than a decade, and the lowest level of initial public offers since 2019.