Goldman Sachs is giving some managers an ultimatum: move to Dallas or Salt Lake City or face termination.
The American multinational investment bank is asking certain employees to relocate to the two cities from its hub offices in New York City and London. The initiative is an apparent attempt by the investment bank to cut costs and tap into the growing talent pool in and around Dallas and Salt Lake City.
In 2022, Goldman Chairman and CEO David M. Solomon called Dallas the firm’s “second most significant hub,” per Dallas Innovates. As previously reported by The Dallas Express, Goldman is set to open a new regional office in Uptown Dallas, with employees moving in by 2027. The $500 million project is expected to bring 5,000 new jobs to the area.
Dallas has grown to become one of Goldman’s largest global operations, while the company’s presence in New York has stagnated.
“We’re focused on operating the firm effectively and prudently over the long term,” Goldman spokesperson Abbey Collins said about the current cost-cutting initiative, per Fortune.
On balance, middle- and back-office roles, which typically bias more toward entry-level positions, have seen most moves away from the bank’s traditional hubs. The bank questioned whether specific locations outside New York City and the like could use more on-site management, prompting the most recent initiative to push more vice presidents, managing directors, and partners to Dallas and Salt Lake City.
While the pandemic lockdowns disrupted Goldman’s in-person operations, like those of other financial institutions, they also instilled confidence that operations could be managed remotely. This helped motivate the company to pursue Solomon’s plans to redistribute U.S. operations nationwide to reduce expenses.
Goldman Sachs is also seeing growth at its offices in Birmingham, U.K., Warsaw, Poland, and Bengaluru, India. Together, those three cities now account for more than four out of 10 of Goldman’s 46,500 employees.