Banking giant Goldman Sachs is preparing to terminate hundreds of staff as early as next week as a recession threatens the US economy. 

According to reports, the layoffs will signal the return of a yearly tradition that was interrupted the previous two years owing to the pandemic.

Without any layoffs, the company's workforce grew to over 47,000 internationally at the end of June, according to data that is currently accessible. 

This is a 15% growth from the same time last year.  This will result in the loss of 500 to 2,400 workers.

By the next week, experts predict that Goldman Sachs would fire one to five percent of its underperforming staff. 

It's not like the large banking organisation hadn't announced this move. Denis Coleman, the chief financial officer, 

Forewarned investors on an earnings call in July that as the economy deteriorated, the company would reduce spending and restrict hiring.

In order to make the best use of our resources, we are carefully reviewing all of our forward spending and investment plans, according to Coleman.

He continued, "Specifically, we have decided to restrict hiring pace and lower some professional costs going ahead, however these changes will take some time to be reflected in our results.

Coleman claimed that the corporation had to make the difficult changes as a result of a quarterly earnings decline of 48%.

It is important to highlight that the decision was influenced by unstable macroeconomic conditions, an uneasy geopolitical environment brought on by the war in Ukraine and Russia, and extremely high inflation.