Goldman Sachs is examining the cost of private jet trips favored by its CEO David Solomon and other top executives as part of a sweeping cost-cutting review, the banking giant confirmed on Wednesday.
The use of two Goldman-owned Gulfstream private jets is “one of the more sensitive areas” of expense facing a budget probe led by the bank’s chief administration officer Ericka Leslie, the Financial Times reported, citing sources familiar with the matter.
The cost review was underway as Goldman Sachs prepared to slash about 3,200 jobs this week – a move meant to shore up the embattled bank’s financial position despite sagging revenue and a looming economic recession.
“We’re looking at expenses in every corner of the firm, so it’s ridiculous to focus on any single segment or line item,” a Goldman Sachs spokesperson told The Post.
The bank is scrambling to cut costs as it seeks to address a profitability crunch driven by dwindling investment banking activity and struggles at its money-losing consumer banking unit, Marcus. Aside from private jet usage, Goldman is also probing the cost of its travel for all bank employees, conferences and vendors, according to the report.
As The Post reported, Goldman Sachs has also ended a free coffee perk in its 11th-floor “Sky Lobby” as part of its cost-cutting push.
Worried bank employees have referred to the looming layoffs, which are its most extensive since the Great Recession, as “David’s Demolition Day.”
Goldman is also expected to slash its annual bonus payments by a whopping 40%.
Under Solomon’s leadership, Goldman Sachs purchased the two Gulfstream jets in 2020 to facilitate client meetings and other business travel for top brass. At the time, the bank said the planes, which reportedly cost tens of millions of dollars each, would be more cost-effective than its old arrangement with charter service NetJets.
But Solomon has reportedly rankled his Goldman Sachs underlings in recent years by using the private jets for his personal use.
In 2021, Bloomberg reported that the jet-setting CEO – who moonlights as a DJ – used the Gulfstreams for multiple trips to the Bahamas and the Hamptons. At one point, the outlet said Solomon booked seven trips aboard Goldman-owned planes in as many weekends.
In company filings, Goldman notes that its internal policy “is to limit personal use” of its private jets and “require reimbursement of the aggregate incremental costs to us.”
In October, Goldman unveiled a major internal restructuring, in which investment banking and trading operations were combined into one unit and Marcus was folded into its asset and wealth management division.