FirstFT: Goldman Sachs plans more job cuts

Goldman Sachs is preparing for another round of job cuts among employees it deems to be the worst performers, people familiar with the matter told the Financial Times.

The planned move, which could begin as soon as next month, is part of an annual exercise that typically results in 1 to 5 percent of the company’s workforce losing their jobs.

Goldman is targeting a figure at the lower end of that range for parts of its core investment banking and trading business, the people said. The 1 percent reduction in Goldman’s total workforce, which includes asset and wealth management and operational functions, will equate to about 440 jobs.

Goldman managers compiled lists of employees who could be fired. Here’s what we know so far about the planned cuts.

Here’s what else I’m watching today and over the weekend:

• The G20 Summit: Indian Prime Minister Narendra Modi will hold a bilateral meeting with US President Joe Biden ahead of the G20 summit in New Delhi tomorrow.

• Mexico-Colombia relations: Mexican President Andrés Manuel López Obrador visited Colombia to meet with his Colombian counterpart, Gustavo Petro.

• Tennis: The women’s and men’s finals of the US Open will be held in New York on Saturday and Sunday, respectively.

How well did you keep up with the news this week? Take our test.

Five more top stories

1. In recent weeks, government employees across China, from nuclear power plants to far-flung hospitals, have been ordered to stop using Apple iPhones. as part of the Beijing-led pushback against the American technology group. Investor concerns about the restrictions, which have not been confirmed by the government in Beijing, have knocked $200 billion off Apple’s market valuation in the past two days.

2. Janet Yellen said she does not expect China’s slowdown to have “a very significant immediate impact on the United States.” The US Treasury Secretary, speaking earlier today in New Delhi ahead of the G20 summit, added that China had “quite a bit of policy space” to deal with the economic downturn. Meanwhile, the yuan continued to fall against the dollar on Friday.

3. Former FTX CEO Ryan Salame pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange. He is the fourth former FTX executive to take a deal with prosecutors, further isolating founder Sam Bankman-Fried less than a month before his trial. Here is our report from the court hearing.

4. A former climatologist and a self-made businesswoman will participate in the presidential elections in Mexico next year after Moreno’s ruling party chose former Mexico City mayor Claudia Scheinbaum as its candidate. Scheinbaum’s election pits her against Xóchitl Galvez, leader of the free-market National Action party, and means Mexico is likely to have its first female leader in its 200-year history after elections in June 2024. Here’s more about the candidates.

5. Germany wants the EU to postpone tariffs on the sale of electric cars in the UK, supporting calls by Rishi Sunak’s government to delay the duties for three years. From January, the bloc intends to impose a 10 percent levy on electric cars transported across the Channel if they have batteries made outside Europe. That is why Berlin changed its position.

• Go deeper: After months of unsuccessful lobbying to curb Chinese imports of electric cars, European carmakers are preparing to face competition from their new rivals.

Today’s big read

Renewed efforts by Saudi Arabia and Russia this week to push oil prices above $100 a barrel threaten to become another headache for Joe Biden as he puts his record on the U.S. economy — and collapsing inflation — at the heart of his reelection bid. What role could Riyadh play in a tense US election?

We also read. . .

Chart of the day

The euro lost against the dollar for an eighth straight week as fears grew that the eurozone economy is heading into recession. In contrast, the US is proving more resilient than investors expected, with the latest labor market data released yesterday showing an unexpected drop in jobless claims. What’s next for the euro?

Take a break from the news

Private membership clubs are booming in New York. Josh Chaffin visits some of the new entrants into a scene that harkens back to 19th-century London and the desire to flaunt wealth and exclusivity.

Additional contributions from Tee Zhuo and Benjamin Wilhelm