Goldman Sachs, the multinational investment bank and financial services company, has announced that it stays “hugely positive” about discovering blockchain applications and is open to hiring more staff for its digital assets unit, despite a substantial cost-cutting effort that will view 3,200 employees lose their jobs.
According to Mathew McDermott, the global head of handling digital assets of Sachs, the digital assets team will employ “as appropriate” this year. McDermott’s statement comes just a month after Goldman Sachs announced its most significant round of layoffs since the globe-based financial crisis of 2008-2009. It reportedly affected senior, junior-level executives, middle and concentrated on the firm’s banking units and core trading.
According to reports, CFO Denis Coleman stated during a presentation at Goldman Sachs’ 2023 Investor Day in New York that some of the payroll reductions would involve delaying the replacement of departing employees this year. This move is aimed at enabling the company to concentrate on “prioritizing strategic hires.”
Despite the layoffs, Goldman Sachs’ digital assets unit has grown significantly in the past year. The team has grown from just four staff members in 2020 to around 70 today, indicating the firm’s continued interest in blockchain technology and cryptocurrency.
McDermott’s comments were made during a visit to Hong Kong. He noted that the firm’s digital assets unit is exploring opportunities to buy crypto companies priced sensibly after the fall of the crypto exchange FTX. McDermott added that the team is already conducting due diligence on some crypto firms and that the underlying technology behind the sector “continues to perform.”
Goldman Sachs has been a significant player in the financial services industry for decades. The firm’s continued interest in blockchain technology and cryptocurrency underscores the growing mainstream acceptance of digital assets. While traditional banks and financial institutions have often been skeptical of cryptocurrency and blockchain, many recognize these technologies’ potential to revolutionize the financial industry.
The digital assets unit at Goldman Sachs has explored blockchain applications for several years and has made significant strides in the field. The firm’s interest in cryptocurrency and blockchain has also led to the development of several blockchain-based projects, such as the firm’s proposed stablecoin, which would be tied to the US dollar.
