In one of the biggest rounds of layoffs since the 2008 financial crisis, Goldman Sachs plans to let go of as many as 3,200 employees this week amid uncertain economic conditions.

The Guardian reported that the announcements are expected to come on Wednesday, with the final number of layoffs to be determined. Bloomberg was the first to report the news.

Goldman Sachs, which has had a huge presence in Salt Lake City since 2000, has declined to comment, per the report.

Early warning signs

Through acquisitions and mergers, investment banks reaped financial gains during 2021 and 2021, and even added thousands of jobs during this time, per The Guardian.

But rising interest rates — which haven't stopped crawling upwards since the Federal Reserve’s first hike in May last year — have pushed companies to save cash in fear of a global recession.

It had nearly 49,100 employees by the end of the third quarter in 2022 but revenue had dropped by 12% from the previous year. In September last year, the banking firm had slowed hiring and announced layoffs of several hundred employees, as BBC reported at the time.

Recent round of cuts

The most recent layoffs will mostly target the company’s investment banking division, an area that has suffered blockages due to the present economic conditions, as CNN reported.

The bank makes annual staff cuts, but the latest layoffs are in addition to the routine, according to Reuters. The news also come ahead of the annual bonuses, which are typically dispatched later in the month of January.

Many of these employees will now face the burdens of a rocky job market, alongside those freshly laid off during smaller cuts from Morgan Stanley, Citigroup and Barclays in the recent months, as CNBC reported.

Goldman plans to continue hiring for junior level roles as needed.