Goldman Sachs is reportedly planning to trim its headcount by 3% to 5% during its annual performance review this spring, potentially leading to more than 1,300 job cuts, including under-performing vice presidents.

The bank’s global workforce stood at 46,500 at the end of December, and the planned reductions follow a series of smaller cuts made during a similar review last September, reported Reuters citing sources.

“This is part of our normal, annual talent management process,” a spokesman for Goldman Sachs stated, without providing further details.

The news was initially reported by eFinancialCareers.

Throughout 2023, Goldman Sachs executed multiple rounds of workforce reductions as dealmaking activity slowed and the bank scaled back its consumer business, which had been incurring losses.

However, the banking environment has shown signs of improvement recently. In January, Goldman Sachs reported its largest quarterly profit in over three years, driven by increased deal fees from investment bankers and active trading markets.

In the same month, CEO David Solomon received an $80m stock bonus as part of a retention plan, ensuring his leadership for another five years. This marked a shift in confidence for Solomon, who had faced scrutiny following the bank’s unsuccessful venture into retail banking.

Additionally, Goldman’s president and chief operating officer, John Waldron, who is considered a likely successor to Solomon, was awarded a retention bonus of $80m in restricted stock. Waldron has also recently been appointed to the bank’s board of directors.

Last month, Goldman Sachs named Elizabeth Overbay as the CFO of its asset and wealth management division. She replaces Thomas Manetta, who is moving to the bank’s HR team, with focus on corporate compensation.

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