White-collar job losses may rise with mega-mergers in US, warns Goldman Sachs
The comments by Goldman Sachs Group President John Waldron arrived a few weeks ahead of the US Presidential Elections 2020, when stalled stimulus talks and economic fallout due to the COVID-19 pandemic, are threatening to undermine job recovery
October 17, 2020 / 10:31 PM IST
Amid the coronavirus pandemic and the economic crisis prevailing globally, the Wall Street’s top matchmaker for mega deals has sighted a wave of corporate takeovers in the US, with worrying implication for the workforce which may see a jump in white-collar job losses.
"Politicians are going to be faced with the uncomfortable reality that you’re going to have more big business doing better and that there’s going to be more losses of jobs along the way," Bloomberg quoted Goldman Sachs Group president John Waldron as saying.
Waldron also noted that the possibility of a sizable amount of large-cap M&A coming with stronger, healthier companies being the acquirer and taking advantage of weaknesses in their industry or elsewhere is bright.
The comments by Waldron, Goldman’s second-in-command, arrived a few weeks ahead of the US Presidential Elections 2020, when stalled stimulus talks and economic fallout due to the COVID-19 pandemic are threatening to undermine job recovery.
Waldron even opined that 'sticky unemployment' may gain momentum once companies combine.
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"Our clients are more desirous of playing offence and doing deals. That’s a good thing. But that includes large companies looking to consolidate smaller companies, and that will be complicated societally," he added.
This year, when most of the firms' financial position shook, Goldman Sachs has been one of the biggest beneficiaries. Its core Wall Street trading and dealmaking operations facing a surge in demand from investors and corporations who are looking forward to repositioning themselves or raise capital.
According to Labor Department data, released on October 15, around 898,000 Americans filed for first-time unemployment benefits last week.