Goldman Sachs is examining the cost of private jet travel favored by CEO David Solomon and other executives as part of a major cost-cutting review, the bank giant confirmed Wednesday.
The Financial Times reported, citing sources familiar with the matter, that the use of the two Goldman Sachs-owned Gulfstream private jets is a budget led by the bank’s CEO, Erica Leslie. It is “one of the more sensitive areas” of costs facing investigation.
A cost review was underway as Goldman Sachs prepared to cut about 3,200 jobs this week.
A Goldman Sachs spokesperson told The Post:
The bank is scrambling to cut costs as it tries to cope with a profitability crisis caused by a contraction in investment banking and a struggle at its loss-making consumer banking division, Marcus. In addition to private use of his jet, Goldman also examines the travel expenses of all bankers, meetings and vendors, according to the report.
As The Post reported, Goldman Sachs has also ended its 11-year free coffee offer.th-Floor “Sky Lobby” as part of cost reduction.
Concerned bank employees are calling the looming layoffs “David’s Demolition Day.”
Goldman is also expected to cut annual bonus payments by a whopping 40%.
Under Solomon’s leadership, Goldman Sachs purchased two Gulfstream jets in 2020 to facilitate client meetings and other executive travel. At the time, the bank said the planes, which reportedly cost tens of millions of dollars each, were more cost-effective than previous arrangements with charter service NetJets.
However, Solomon has reportedly belittled Goldman Sachs men in recent years for his personal use of private jets.
In 2021, Bloomberg reported that the CEO of Jets, who moonlights as a DJ, used Gulfstream for multiple trips to the Bahamas and Hamptons. At one point, the outlet said Solomon had booked seven trips over the weekend aboard Goldman-owned planes.
Goldman said in company filings that its internal policy is to “restrict personal use” of its private jets and “require us to reimburse all incremental costs.” increase.
In October, Goldman announced a major internal restructuring, consolidating its investment banking and trading operations into one unit and integrating Marcus into its wealth and wealth management division.