The 'Plant Layoff' Notice vs. The 'WARN' Notice

The first “plant layoff” notice came in February: 43 people would lose their jobs.

The second arrived 6 weeks later, increasing the cuts to 109 workers. Then a third, in April, for 146 more. And a fourth, in June: 98. Three more notices followed, including 20 dismissals announced last week.

The “plant” in question - Goldman Sachs Group.  Like all big companies in New York State, the firm is required to file a “WARN notice” with state authorities when it plans to shed large numbers of employees as part of a plant closing, or “mass layoffs” involving 250 or more. Employers also must inform the state of smaller reductions under certain circumstances, and Goldman Sachs cited a “plant layoff” in each case. Last week’s notice brings this year’s job-cut tally to 443. 

[Note: According to a nearby article - "Goldman Sachs Announces More Layoffs" - Goldman has dismissed 486 employees in New Yrok State during 2016.]

With the run of notices, seven since the start of the year, the bank has signaled its intention to dismiss hundreds of employees in New York without placing a single, headline-grabbing number on the overall reduction, already its largest since 2008. The company’s approach differs from competitors, including Morgan Stanley, who have shown a preference for larger, one-time cuts.

The WARN notices don’t capture firings outside New York and they don’t include voluntary retirements. More than a half-dozen partners have left Goldman Sachs this year, according to internal memos obtained by Bloomberg.

Goldman Sachs set aside $9.2 billion for compensation and benefits this year through September, 13% less than the first 9 months of last year. Total employees, including consultants and part-time workers, fell 5.4% to 34,900.