Goldman Sachs Group Inc. plans to cut about 400 jobs in its retail banking division, Bloomberg reports, citing informed sources.

Earlier, Goldman Chief Executive Officer David Solomon said that the bank intends to abandon its previous ambitions in this area. The retail division, which is unprofitable, intends to stop making loans in the coming months, but will continue to attract consumer funds for deposits.

Solomon also signaled that the bank’s management is evaluating other areas of the business for possible cost cuts.

Goldman has spent quite a bit this year on technology and integrating operations, leading experts to predict a 44% drop in its annualized adjusted earnings. Increased expenses of the retail division, the downturn in business activity and the decline in financial markets will negatively affect the bank’s results and bonuses of top managers.

In October this year, Goldman announced that it was splitting its operations into three main segments as part of a reorganization. The bank’s investment banking and trading businesses were combined into one division. The second included asset management and wealth management operations, as well as online consumer bank Marcus.

The third unit combined the bank’s payments platform, Goldman’s fintech assets, the GreenSky loan service, and the bank’s JVs with Apple Inc. and General Motors Co.

“We have launched certain cost-cutting measures, but it will be some time before we can see the results of that,” Solomon said during a conference call last week. – In any case, we will remain flexible.”

Goldman, led by Solomon, has been aggressively acquiring assets in an effort to diversify its business and create new growth engines beyond its core investment banking operations. The bank’s headcount has grown 34% since 2018, surpassing the 49,000 mark at the end of the third quarter of 2022.

Goldman shares have fallen 5% since the start of 2022.