The investment banking giant announces plans to cut staff

Image source: Getty Images

This isn’t exactly great news.

the main points

• There has been a recent rise in layoffs across the technology sector.
• Now, Goldman Sachs is making plans to reduce its headcount.
• Other big companies could follow suit, so it pays to prepare for layoffs by boosting your savings and polishing your resume.

Since mid-2022, financial experts have been warning consumers that impending recession. And the greatest fear tends to focus heavily on job loss.

During periods of economic downturn, layoffs can be rampant. And if she is forced out of a job, it could lead to a world of financial turmoil.

Meanwhile, despite the low unemployment rate, the topic of layoffs has been in the news a lot over the past few months. This is largely due to the number of big names in technology that are advertising plans to reduce its staff.

But on Jan. 9, investment bank giant Goldman Sachs announced plans to lay off up to 3,200 workers this week. This is too troubling news to absorb.

It’s not just a technical problem

Tech companies went on a hiring spree in 2021 due to the COVID-19 pandemic. Many consumers have adopted habits that have brought revenue to giants like Amazon and Netflix. But as people return to their pre-pandemic habits, tech companies have taken a hit — and have taken it upon themselves to cut staff as a result. What’s troubling about the Goldman Sachs announcement is that we’re hearing about layoffs outside of the tech industry.

Of course, it’s no secret that the stock market did poorly in 2022, and many investors are looking for losses in their retirement plans and Brokerage accounts. So it’s not entirely surprising that financial companies want to cut costs.

But still, if Goldman plans to cut staff, it’s hard to know which major company will be next. It is also difficult to know whether downsizing will become a trend among middlemen and workers Small trade also. That’s why now is a good time for working Americans to make an effort to shore up their savings — and protect themselves financially in the event of a layoff.

Are you ready to deal with the period of unemployment?

The truth is that even if a full recession doesn’t hit the US economy, some jobs could be at a severe halt in the near term. It is a good idea to prepare for this possibility by developing your abilities saving account balance.

At a minimum, you should aim to have enough money in the bank to cover three full months of basic living expenses. But the more income you can cover, the more financial protection you’ll buy for yourself. So, for example, if your savings can now pay the bills for three months, it’s a good idea to save enough so that you can cover the cost of living for four months.

Of course, there are steps you can take outside of boosting your savings to prepare for a layoff. This includes updating your resume, growing your job skills, and developing more professional connections in your field.

But the most important thing to do now in light of the news of layoffs and recession warnings is to give your savings account a boost. So it’s a good idea to make this your priority in the coming weeks.