You’re getting a raise! Sorry, did I say raise? I meant paycut…oops. Wall Street powerhouse Goldman Sachs is cutting employee wages.
The average Goldman Sachs employee made ‘only’ $246,216 over the first nine months of 2019. That’s a far cry from poverty, but it’s the lowest average since 2009 – when employees made over twice as much.
- Relocating my share of the pie. Goldman trimmed the compensation budget to 35% of revenues make room for big investments in technology and marketing.
- Robo-broker. Goldman spent $100 million automating its trading systems to replace human brokers with robot brokers.
- Apple juiced. The company dropped over $450 million on marketing, including promoting the Apple Card and its in-house credit card.
Are you hiring? Goldman has more employees on payroll than it did in 2009, but most of the new hires are younger, cheaper workers filling support roles.
How Does It Affect My Wallet?
Goldman Sachs used to be an exclusive Wall Street investment banker with limited consumer services. Today, the firm has credit cards, asset management, lending, and investing options.
- If you have a consumer account with Goldman Sachs, you’ll be interacting with software more than people in the near future.
Software engineers and coders are the modern Wall Street rock stars.
Monkey see, monkey do. If Goldman is investing in automation, chances are other investment banks are too. This can affect jobs and the way money is managed.
Too long, didn’t read…
Goldman cut employee compensation to its lowest portion of revenue in 10 years, clearing the way for over half-a-billion in marketing and technology investments.
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