Market News Archives (2024)

New Goldman Sachs Layoffs Surge Past 1,000

New Goldman Sachs layoffs surge past 1,000 as 4% of the bank giant’s workforce prepares to get laid off, the Wall Street Journal confirms.

David Solomon is making cuts once again.

The CEO of Goldman Sachs plans to eliminate over 1,300 jobs as part of the bank’s ongoing review aimed at removing underperformers, according to a report from WSJ.

This reduction will impact about 3% to 4% of Goldman’s workforce, which numbers around 45,000.

The layoffs have already begun and are expected to continue through the fall as part of a yearly process known as the “strategic resource assessment.”

Tony Fratto, a spokesperson for Goldman, stated that these annual talent reviews are standard procedures.

He also noted that the headcount is expected to be higher by the end of 2024 compared to last year.

Goldman typically aims to reduce its workforce by 2% to 7% each year based on performance metrics, market conditions, and financial outlook.

Last year’s review led to cuts affecting 1% to 5% of employees.

After pausing performance-related layoffs for two years due to the COVID-19 pandemic, Goldman reinstated them in 2022.

During the pandemic, the bank, like many others, allowed flexible work-from-home arrangements.

However, firms are now urging employees to return to the office and are tightening policies for those who don’t comply.

Solomon previously described remote work as “an aberration” that would be corrected soon.

In-person attendance is one of the factors considered during performance evaluations at leading banks.

The current layoffs follow a significant reduction of about 3,200 jobs in January 2023, driven by a decline in deal-making and reduced bonuses.

Despite concerns about a potential economic downturn and uncertainty surrounding the upcoming U.S. election, there are signs of optimism for a recovery.

Goldman Sachs reported a 21% increase in investment banking revenue for the second quarter compared to the same period last year.

Solomon mentioned in an earnings call that they are seeing early signs of recovery in capital markets and M&A activity.

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Also Read:The US Treasury Direct is Now Freezing Customer Accounts

Other Banking News Today

Citibank now fires a whistleblower for ‘underperformance’, after the former employee provided records requested by the OCC.

Citi has filed a countersuit against its former employee, Kathleen Martin, alleging that she was terminated not for refusing to falsify records for the Office of the Comptroller of the Currency (OCC), as she claimed in her lawsuit from May, but rather for being unable to properly fulfill the duties of her role.

Martin, who was let go from her position as Citi’s interim data transformation chair in September 2023 after nearly two years with the bank, had alleged in her lawsuit that she was fired for not agreeing to Chief Operating Officer Anand Selva’s request to conceal information from the OCC that would make the lender “look bad.”

In a revised lawsuit, Kathleen Martin has accused Citi’s Chief Operating Officer Anand Selva of intentionally deceiving the bank by wanting to misrepresent Citi’s compliance metrics to the Office of the Comptroller of the Currency (OCC).

Martin claims Selva sought to conceal information from the OCC that would have made the bank “look bad.”

However, Citi maintains that Martin’s termination in September 2023 was not due to her refusal to falsify records, but rather because she lacked the necessary “leadership and engagement skills” to effectively execute the role of interim Data Transformation Chair, which she had been appointed to after the previous chair, Rob Casper, departed the company.

Citi asserts that during Martin’s interviews and assessment for the interim role, it was identified that she needed to improve in areas like her “dogmatic nature, lack of innovation and lack of experience driving the execution of complex change across Citi.”

Once Casper left, Citi’s senior leadership, including COO Selva, determined that Martin could not successfully fulfill the demands of the interim chair position.

According to Citi, COO Anand Selva tried to help the plaintiff, Kathleen Martin, improve her performance in the interim Data Transformation Chair role.

Selva allegedly set up one-on-one meetings and working groups to facilitate better collaboration and working relationships with stakeholders.

Selva’s HR team also provided Martin with a senior mentor to support her development.

In May 2023, Citi leadership discussed a plan to improve Martin’s performance.

In July, Selva conveyed Martin’s mid-year review before she raised any concerns about his behavior.

Soon after, Martin contacted HR and expressed fears about her job security.

Citi claims that Martin “felt her position was at risk,” but the bank asserts that internal documents showed she “exceeded expectations” and that CEO Jane Fraser had commended her for her “gravitas” and ability to build “strong relationships” at the bank.

However, Citi says Martin failed to heed the feedback provided, and she was ultimately removed from the Data Transformation Chair role because she lacked the “executive level relationships” and leadership needed to successfully execute the data transformation efforts.

Citi says the data transformation work was too critical for the bank to tolerate Martin’s underperformance.

Citi denies Martin’s claims that she protested the reporting of a key metric accurately or that Selva objected to it.

The bank says Selva and Martin met in September 2023 to discuss reporting certain metrics using red, amber, and green scales.

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Also Read: A Massive US Bank is Now Closing Credit Cards

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Home Prices Have Now Increased 67% in Florida

Home prices have now increased 67% in Florida with homeowners insurance skyrocketing 42% since 2020.

After five decades in education, Janet Stone envisioned a peaceful retirement in her condo overlooking Florida’s Atlantic coast.

However, she now finds herself back in the workforce, teaching preschoolers with disabilities, and living with her son in Las Vegas to manage a $100,000 bill from her condo association for a large-scale concrete restoration project.

“I shouldn’t say it, but it really sucks to work every day and not have a cent and have to wonder, ‘Can I afford groceries this week?’” Stone said.

She bought her Ormond Beach condo for $400,000 in 2021, but now all her earnings go toward the renovation costs.

Aging condo buildings across Florida face rising expenses and significant repairs to meet new regulations after the tragic collapse of the Champlain Towers in 2021, which resulted in 98 fatalities.

While these regulations aim to enhance safety, they are placing financial strain on many condo owners and threatening affordable housing options along Florida’s coastline.

Florida House Representative Vicki Lopez noted that the need for repairs could force some residents, particularly those on fixed incomes, to seek alternative housing during an already challenging affordable housing crisis.

The rising costs of housing are affecting many households in Florida, where home prices have surged by 67% since 2020, and homeowners insurance rose by 42% last year, per NBC News.

The median-income households in most Florida counties now struggle to afford median-priced homes.

Older condominiums have typically provided an alternative for those unable to buy single-family homes, often housing retirees and single-income households.

However, the financial burden of living in these buildings is increasing.

New legislation requires condo buildings over three stories and older than 30 years to pass structural inspections by the end of the year, impacting around 900,000 units statewide.

This law also mandates that condo associations maintain minimum reserves for future repairs, leading to increased monthly dues.

For example, residents at the Palm Bay Yacht Club in Miami are facing a $140,000 special assessment for building improvements, while owners at Daytona Beach’s Surfside condos have paid between $50,000 and $60,000 for concrete repairs and window replacements.

In Orlando, Regency Gardens residents were told they would need to pay $22,000 each for upgrades, prompting some to remove the board in hopes of reducing costs.

In severe cases, residents are being forced to evacuate due to structural issues found during inspections.

Greg Batista, a professional engineer, mentioned that he is currently working on a Miami Beach building that may require evacuation due to safety concerns.

Stone, who purchased her condo to be near her daughter and grandchild, was shocked to receive a $100,000 special assessment for necessary repairs just a year after buying the property.

Having already depleted most of her retirement savings for the down payment, she now faces the risk of foreclosure if she cannot pay the assessment.

Despite considering selling her condo, she found that the assessment had lowered property values significantly; a similar unit is now listed for $335,000, down from her purchase price.

With limited options, Stone returned to work at a school in Las Vegas, teaching children with autism.

“I am exhausted every single day,” she said.

“I come home and promptly fall asleep and get up and do it the next day.”

She estimates it will take two years of full-time work to pay off the assessment, after which she hopes to return to her Florida condo, currently shared with her son.

“This was supposed to be my retirement, a time to enjoy life with my family,” she lamented.

The rising costs of condo ownership are leading to more units being listed for sale and driving down prices.

Statewide, the number of condos for sale has increased by 23% in the last six months, while prices have dropped by 4.5%.

In Volusia County, where Stone lives, inventory is up 28% and sale prices have decreased by 9%.

Realtor Krista Goodrich noted that many condos are struggling to sell due to buyer hesitance stemming from concerns about structural integrity and the impact of hurricanes.

While some buildings may require little to no repairs, many are now facing the consequences of years of inadequate maintenance and substandard building practices, compounded by the corrosive effects of Florida’s saltwater on concrete and rebar.

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Also Read: Allstate Now Increasing Home Insurance Rates in California By 34%

Other Economy News Today

Allstate is now increasing home insurance rates in California by 34%, making it the largest rate increase among major insurers in the state.

This month, the Department of Insurance approved Allstate’s request to raise home insurance rates by an average of 34.1% for approximately 350,000 customers in the state, per Bloomberg.

While some homeowners may experience decreases of up to 57%, at least one customer could face a nearly 650% increase.

The new rates will be reflected in bills at the first renewal date after November 7, as outlined in the company’s filings with the state.

This is the largest rate increase by a major insurer since 2021, when Homesite Insurance Co., a subsidiary of American Family Insurance, was approved for a 38.2% hike in homeowner rates.

Allstate’s increase pertains solely to homeowner’s insurance, but the company also has a pending request to raise rates for condominium owners by an average of 30%.

“Higher home values and repair costs coupled with more frequent, severe weather lead to higher payments to help customers recover, so we need to adjust rates to better reflect the cost of protecting our customers,” a company spokesperson said in a statement.

A company spokesperson did not specify when the insurer would start accepting new policies again.

The conditions for resuming new policies include implementing a series of reforms known as the Sustainable Insurance Strategy, which Insurance Commissioner Ricardo Lara has pledged will be ready by year-end.

These reforms aim to change the pricing formulas and expedite the approval process for rate adjustments, reports SF Chronicle.

Experts believe these changes may enable insurers to increase their prices further.

In return, they will be expected to write more policies in regions most affected by the insurance crisis.

“Under Proposition 103, insurance companies are increasing their rates — legally — but they are not writing more policies. That is the problem Commissioner Lara is solving with the Sustainable Insurance Strategy,” Michael Soller, deputy insurance commissioner with the Department of Insurance, said in a statement.

He added: “California still has lower insurance costs on average than many large states.

Increasing availability is how we will get to affordability in all areas.”

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Also Read: Harris Proposes Building A Whopping 3 Million New Homes

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Fulton Bank Is Now Cutting 111 Roles in New Jersey

Fulton Bank is now cutting 111 roles in New Jersey following the acquisition of the failed Republic First Bank.

The Lancaster, Pennsylvania-based lender plans to restructure some of the eliminated roles into new positions while retaining some employees whose jobs have been cut.

Following the recent acquisition of Republic Bank, which brought in over 300 new team members, many of whom had overlapping roles with existing corporate staff, the company eliminated redundant positions.

Steve Trapnell, a spokesperson for Fulton, stated via email to Banking Dive that some of the eliminated roles would be transformed into entirely new positions, and they hope to keep some affected employees.

The layoffs, primarily impacting staff at the lender’s Mount Laurel, New Jersey location, will take place between November 11 and December 27, as noted in a notice filed with the state’s Department of Labor & Workforce Development.

Fulton, which has approximately $30 billion in assets, has restructured its credit and commercial teams as part of the FultonFirst transformation, leading to further layoffs.

Trapnell mentioned that the bank employs over 3,500 individuals.

In July, Fulton’s board decided to close 13 branches and consolidate operations into nearby locations, with those closures expected around November 22, according to a filing with the Securities and Exchange Commission.

Following these branch closures, Fulton Financial Corp. anticipates reducing annual pre-tax operating costs by about $8 million starting in the first quarter of next year, although it will incur around $1 million in future severance expenses.

In April, Fulton agreed to acquire all assets and deposits of the struggling Philadelphia lender Republic First after the Pennsylvania Department of Banking and Securities closed Republic First and appointed the Federal Deposit Insurance Corp. as the receiver.

This acquisition ended a period of internal conflict within Republic First and enabled Fulton to expand into New York and double its presence in Philadelphia.

Additionally, Fulton is set to welcome a new CFO next week.

Rick Kraemer, the former treasurer and deputy CFO of Valley Bank, will join Fulton on Tuesday and assume CFO responsibilities starting next quarter.

“Fulton Bank remains a strong, stable organization committed to the customers and communities it serves,” Trapnell stated.

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Also Read:The US Treasury Direct is Now Freezing Customer Accounts

Other Banking News Today

Citibank now fires a whistleblower for ‘underperformance’, after the former employee provided records requested by the OCC.

Citi has filed a countersuit against its former employee, Kathleen Martin, alleging that she was terminated not for refusing to falsify records for the Office of the Comptroller of the Currency (OCC), as she claimed in her lawsuit from May, but rather for being unable to properly fulfill the duties of her role.

Martin, who was let go from her position as Citi’s interim data transformation chair in September 2023 after nearly two years with the bank, had alleged in her lawsuit that she was fired for not agreeing to Chief Operating Officer Anand Selva’s request to conceal information from the OCC that would make the lender “look bad.”

In a revised lawsuit, Kathleen Martin has accused Citi’s Chief Operating Officer Anand Selva of intentionally deceiving the bank by wanting to misrepresent Citi’s compliance metrics to the Office of the Comptroller of the Currency (OCC).

Martin claims Selva sought to conceal information from the OCC that would have made the bank “look bad.”

However, Citi maintains that Martin’s termination in September 2023 was not due to her refusal to falsify records, but rather because she lacked the necessary “leadership and engagement skills” to effectively execute the role of interim Data Transformation Chair, which she had been appointed to after the previous chair, Rob Casper, departed the company.

Citi asserts that during Martin’s interviews and assessment for the interim role, it was identified that she needed to improve in areas like her “dogmatic nature, lack of innovation and lack of experience driving the execution of complex change across Citi.”

Once Casper left, Citi’s senior leadership, including COO Selva, determined that Martin could not successfully fulfill the demands of the interim chair position.

According to Citi, COO Anand Selva tried to help the plaintiff, Kathleen Martin, improve her performance in the interim Data Transformation Chair role.

Selva allegedly set up one-on-one meetings and working groups to facilitate better collaboration and working relationships with stakeholders.

Selva’s HR team also provided Martin with a senior mentor to support her development.

In May 2023, Citi leadership discussed a plan to improve Martin’s performance.

In July, Selva conveyed Martin’s mid-year review before she raised any concerns about his behavior.

Soon after, Martin contacted HR and expressed fears about her job security.

Citi claims that Martin “felt her position was at risk,” but the bank asserts that internal documents showed she “exceeded expectations” and that CEO Jane Fraser had commended her for her “gravitas” and ability to build “strong relationships” at the bank.

However, Citi says Martin failed to heed the feedback provided, and she was ultimately removed from the Data Transformation Chair role because she lacked the “executive level relationships” and leadership needed to successfully execute the data transformation efforts.

Citi says the data transformation work was too critical for the bank to tolerate Martin’s underperformance.

Citi denies Martin’s claims that she protested the reporting of a key metric accurately or that Selva objected to it.

The bank says Selva and Martin met in September 2023 to discuss reporting certain metrics using red, amber, and green scales.

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Also Read: A Massive US Bank is Now Closing Credit Cards

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Two Bankrupt Furniture Retailers Are Now Closing All Stores

Two bankrupt furniture retailers are now closing all stores due to ongoing financial challenges and compounding debt.

Conn’s and Badco*ck are both closing all of their stores nationwide, prompting the companies to initiate liquidation sales.

Badco*ck furniture, has been in business for more than 120 years and filed for Chapter 11 bankruptcy in late July.

The unexpected bankruptcy left customers perplexed and angry after orders were unable to get fulfilled.

“I signed my paperwork Tuesday bankrupt Wednesday. Tell me someone didn’t know something!! Bankruptcy is a process,” wrote one customer.

The Badco*ck location in Bonifay, Florida, posted published the following statement:

“We found out Tuesday afternoon, after 120 years, Badco*ck Home Furnishings and more will be closing ALL stores.

“Yes, EVERY store.

Like you, we are shocked and overwhelmed.

We feel like a family member has died.

We’ve shed many many tears over the last few days and have prayed more than we ever have.”

Badco*ck was purchased by Conn’s Furniture in 2022.

“What we didn’t know, was that Conn’s was already a sinking ship before acquiring Badco*ck,” the post from the Bonifay stores stated.

“We have thought of Badco*ck as the little lifeboat, floating out in the big ocean.

As Conn’s sunk deeper and deeper, they grabbed ahold of Badco*ck, sinking the little lifeboat with the big ship.”

Conn’s website reads, “Yes, all Conn’s stores are closing”.

Conn’s and Badco*ck have been holding liquidation sales in all stores.

They are still delivering items but have stopped offering financing, per TheStreet.

Both companies will completely close all stores by the end of October, though most stores will close sooner.

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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

Other Economy News Today

A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.

Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.

The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.

According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.

As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.

Many fans took to social media to express how upset they were with the loss.

“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.

“It was inevitable,” a second person mourned.

“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.

“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”

One person revealed that they had forgotten the rental service had existed.

Some users were not surprised by the announcement.

“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.

“Also kinda remember getting into a feud with them on here.”

One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.

Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.

At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.

The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.

It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.

Also Read: This Massive Mall Retailer Is Now Closing In California

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Thousands of Unexpected Layoffs Now Hit California

Thousands of unexpected layoffs now hit California as more companies file WARN notices, advising of upcoming job cuts in the state.

It’s important to note that under theWorker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.

This federal law is intended to give workers time to seek alternative employment or retraining opportunities.

Over the past week, a number of WARN notices have been filed with theCalifornia Employment Development Department.

One of the latest companies warning of upcoming layoffs in California is Cisco, who has advised that a whopping 5,500 employees will lose their jobs this year.

Despite profiting billions, the company is laying off a total of 53 staff at one of its locations in San Jose, California this October.

“Cisco is laser focused on growth, consistent execution, and resetting our cost structure as we invest in AI, cloud, and cybersecurity,” a company spokesperson said.

However, Cisco isn’t the only company laying off in the Golden State.

Below is a list of other businesses who recently announced layoffs in California:

• On October 8, Genentech will let go of 93staff in San Francisco.
• Mama’s Ladera Ranch is permanently closing, and allstaff will lose their jobsin October.
• Menzies Aviation isletting go 91 staff in Los Angeles on October 31.
• AT&T is terminating 20 employees in San Ramon.
• Fermented Sciences willcut 50 staff in Ventura.
• Bright Innovations Lab is closing a facility in Santa Clarita in October, leading to mass layoffs.
• Hybrid Apparel is closing a location in Huntington Beach,resulting in layoffson October 4.
• Paramount Global islaying off 288 employeesin Los Angeles on October 12. Paramount, the parent company of CBS, Nickelodeon and MTV, is beginning a series of job cuts that would cut staff byroughly 15 percent in the United States.
• ITC Federal also announced layoffs. They will becutting 31 staffin Laguna Niguel on October 18.
• Fastly islaying off 52 staffin San Francisco.
• Adventist Health iscutting staff in Simi Valley.
• Pitney Bowes islaying off 348 staffacross two facilities in Stockton and Bloomington.
• Texas Scenic Company is laying off 23 staff in the City of Industry.
• Vytalogy Wellness is laying off 33 staff in Santa Ana.
• Vir Biotechnology is laying off 141 staff in San Francisco.
• Ajinomoto Bio-Pharma Servicesis laying off 127 staffin San Diego on September 30.
• Illumina islaying off 49 staffin San Diego on October 1.
• Fibro Gen islaying off 127 staffin San Francisco.
• Velo 3D islaying off 42 staffin Fremont.
• Mosaic Culver islaying off staff in Culver City.

You can search for layoffs in your state here, or follow our layoff news for updates.

Also Read: Cisco Now Profits Billions And Makes Thousands of Unexpected Layoffs

Layoff and Unemployment Report

Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.

First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.

Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.

That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.

The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.

US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.

Still, hiring remains strong.

Although the unemployment rate ticked up to 3.9%, it as seen the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.

Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.

“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”

“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.

The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.

While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”

Ian Shepherdson at Pantheon Economics said in a note earlier this quarter: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”

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Also Read:Retirees Will Now Receive More Money For Social Security

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