Goldman Sachs yanks free coffee perk as layoffs loom
Goldman Sachs bankers — many of them already jittery over the prospect of getting fired — were greeted with a cold slap as they returned to work on Tuesday: crappy coffee that was no longer free.
As the rank and file filtered into the mega-bank’s posh Manhattan headquarters at 200 West St., those who went to grab their usual cup of joe in the so-called “Sky Lobby” on the 11th floor were confronted with āa sign and a woman yelling at us that it was no longer complimentary,” one caffeine-addicted employee griped.
āWe had to go to the checkout counter before we could leave. I paid $2.99 this morning for a sh–ty cup of Seattleās Best,ā the frustrated financier fumed. āNothing says ‘Happy New Year’ like āYouāre already on the verge of losing your jobs — but letās just make sure you lose your free coffee, too.āā
Goldmanites were on edge on the first work day of 2023 after chief executive David Solomon revealed plans to lay off another roundā of workers during “the first half of January.” Last month, Semafor reported Goldman will lay off 4,000 ālow performingā staff ā roughly 8% of its workforce — although insiders noted it may ultimately be a smaller number.
Another staffer took the coffee clampdown in stride, noting that āAll the floors have coffee machines ā¦Ā just theĀ drip isnātĀ free anymore” — the latter being the serve-yourself stuff that’s dispensed from the spigots in the Sky Lobby. The staffer also admitted, however, that the coffee machines inside the offices are frequently broken.
ā’Kick a man while they are down’ seems to be Goldmanās 2023 mantra,ā the first source added. āPeople arenāt jovial from the holiday rest ā¦ now theyāre pissed about the loss of coffee, too.”
A Goldman rep pointed to the coffee machines Goldman provides. āThere is free coffee available to all employees on every floor — from drip coffee to espresso drinks,ā spokesperson Abbey Collins told The Post. Ā
But employees claim the machines are frequently ouą²t of commission,ź§ and the ones that do workĀ make coffee that āsucks.ā
After Labor Day, Goldman removed the last vestige of pandemic perks: the complimentary āgrab and goā coffee station at the entrance of 200 West St. ā stockeš ŗd with coldbrew, as well as stashes of French vanilla creamer, almond milk, soy milk šand half-and-half ā that appeared during the pandemic to encourage attendance.Ā
It’s not just coffee that has been yanked. In April, Goldman announced that employees were once again on the hook for the cost of breakfast and lunch. Goldman hiked its meal allowance for dinner to $30 frāØom $25 after The Post reported staff were griping that they coą·“uldnāt even buy a Chipotle dinner with the stingy stipend.
Also in April, Solomon ended free daily car rides to and from the office, which the bank hašd begun offering at the start of the COVID outbreak, The Post was first to report. It now limits the benefit to employees who work welź¦l into the evening, sources said.
Ultimately, the brass determined it didn’t need sweeteners to get people back to the office, sources told The Post. Instead, management believed the threat of getting fired should more than enough incentive, the sources said.
āThere ą·“are a variety of factors impacting the business landscape, including tightening monetaš¬ry conditions that are slowing down economic activity,ā Solomon said in a voice memo sent to employees last week. āWe need to proceed with caution and manage our resources wisely.ā
The year-end mšemo came as profits at major banks slump and the top brass at those firms look to downsize their workforce amid a slowing economy. In Septembšer, Goldman chopped roughly 1% to 5% of underperformers.
While every bank on Wall Street is faced with troubling economic conditions, Goldman appears to be in a particularly precarious position. Earlier this week, The Post reported some Goldman partners believe Solomon isnāt up to the task of running the prestigious firm. Goldman is dwarfed in size by bankšs like Morgan Stanley aānd JPMorgan, and insiders feel Solomon hasnāt done enough to compete with the rivals, insiders told The Postās Charlie Gasparino.
But employees say removing a little boost of caffeine isn’t the way to ramp up revenues.
āItās pretty f—ed they want us to work 90 hour weeks but canāt get a free cup of coffee in exchange to keep us awake? Come on.”