Central banks have still not stopped raising interest rates. Unfortunately, that does not only have adverse consequences for cryptocurrencies like bitcoin (BTC), but also for the rest of the economy. Even the greatest institutions are feeling the pain. Goldman Sachs has announced that it will lay off employees, but it also wants to buy crypto companies.
Banks feel the crisis
The Wall Street Journal has heard from its own sources that Goldman Sachs plans to lay off about 8% of its employees. The US investment bank has approximately 43,900 employees8% therefore amounts to more than 3,500 people.
Bloomberg confirms the news. According to this investment newspaper, Goldman Sachs CEO David Solomon expects tougher economic conditions in 2023, so ‘downsizing’ would be the best option. Last year was one of fewer IPOs and acquisitions, on which banks usually earn a lot. Similarly, Goldman Sachs’ sales have fallen sharply, and annual profits could fall by 44%.
The same is the case with many other companies on Wall Street, Morgan Stanley would soon employees are going to be fired. Still, Bank of America strikes into another roadpeople leave voluntarily. ‘Natural attrition’ would ensure that immediate dismissal is not necessary, and the bank wants to keep vacant positions that way.
Goldman Sachs wants to buy crypto companies
Goldman Sachs CEO David Solomon recently stated that cryptocurrencies are very speculative, but that he still has a positive view of blockchain technology. Therefore, he sees the bear market as an opportunity to buy at a discount.
Goldman’s chief executive of the crypto arm, Mathew McDermott, already sees some opportunities that now have “much healthier prices.” He is already considering several companies for a possible takeover, although he does not name names. It could be crypto miners or exchanges, but also completely different companies.
When the crypto industry started to shrink earlier this year, FTX CEO Sam Bankman-Fried was seen as a kind of savior, but this role may shift in the near future. There appears to be more and more traditional financial institutions that have a serious interest in crypto.