Goldman Sachs reinforces Crypto team with new hires after layoffs
In January 2023, Goldman Sachs, a multinational investment bank, announced plans to cut around 3,200 employees as part of a cost-cutting exercise. But despite this move, the bank remains open to hiring new talent in the cryptocurrency space.
Goldman Sachs has been actively exploring the crypto market in recent years, by investing in crypto-related companies and offering its clients exposure to cryptocurrencies through various services. As cryptocurrencies grow in popularity and mainstream acceptance, other major financial institutions will follow suit and step up their efforts.
Golden Sachs open for crypto hires
Despite the recent cutbacks, Goldman Sachs’ commitment to the crypto market shows it is still keen to expand its presence. According to Mathew McDermott, Goldman Sachs’ global head of digital assets, the bank remains committed to building its crypto team and is actively seeking to hire new talent.
McDermott also stated that the bank sees cryptocurrencies as an important part of the future of finance and is dedicated to being at the forefront of this rapidly developing market.
He disclosed this information to Bloomberg in Hong Kong last week, citing a noticeable increase in its digital assets team. He noted that as of 2020, the team had only four members, but has grown to a capacity of 70 members.
This news comes in the middle positive expectations by confident cryptanalysts. Some believe that crypto firms’ use of digital currencies will increase significantly in 2023. Another expectation in the crypto space is the popularity of decentralized finance (DeFi), which aims to be a replacement for traditional financial institutions.
Golden Sachs plans more crypto exposure
Goldman Sachs’ plans to strengthen its crypto team emerged amid the downsizing of more than 3,000 employees in January 2023. This is the largest layoff by the company since the 2008-2009 global financial crisis, which affected the normal operations of specific organizations.
According to sources close to the case, the massive layoffs in January have affected junior, senior and mid-level managers who are engaged in the company’s banking units and core trading.
In a 2023 presentation under the company’s Investor Day in New Yorkmentioned Golden Sachs CFO Denis Coleman that the company would delay replacing the departing staff in order to properly plan and prioritize the following hiring process.
Before then, McDermott stated that the firm was focusing on buying more reasonably priced digital currency companies following the fallout of the FTX cryptocurrency exchange. He also noted that it had already started the process and is following due diligence to buy some digital currency companies.
He added that although FTX had become a negative example in the crypto space, the industry will ultimately continue to perform for the benefit of the masses.
Featured image from Pexels, chart from TradingView.com
