The 4,000 layoffs that Goldman Sachs warned of earlier this month are likely to begin to take place in early January, David Solomon, CEO, informed employees in his annual year-end memo.

This staff reduction, which would impact 8% of Goldman’s workforce, is in addition to 3,000 Goldman Sachs investment bankers seeing their bonuses slashed by as much as 40%, and the bank letting go of 1% to 5% of underperformers in September.

“We are conducting a careful review, and while discussions are still ongoing, we anticipate our headcount reduction will take place in the first half of January,” Solomon said in a voice memo Wednesday, according to a report in the New York Post.

“There are a variety of factors impacting the business landscape, including tightening monetary conditions that are slowing down economic activity,” Solomon added. “We need to proceed with caution and manage our resources wisely.”

Mergers and acquisitions boomed last year, and investment bank profits soared. Bonuses rose by an average of 35% in 2021, but this year, with M&A dried up, these same bankers are going to be hit the worst.

Speaking at a conference earlier this month, Solomon said, “We continue to see headwinds on our expense line, particularly in the near term. We’ve set in motion certain expense mitigation plans, but it will take some time to realize the benefits.

“Ultimately, we will remain nimble, and we will size the firm to reflect the opportunity set.”

Displeased at the prospect of significant cuts to their bonuses, which Wall Street relies on for the bulk of their compensation, 72% of 1,096 investment bankers at top-tier firms would consider resigning, according to a survey by online social networking forum Fishbowl.

However, bankers that the Post interviewed said they are holding onto their jobs, due to a possible recession in 2023.

“Everyone is on edge,” said one Goldman Sachs banker.