Goldman Sachs revises private jet travel cost preferred by CEO David Solomon: report

Goldman Sachs is studying the cost of flying private jets, which its CEO David Solomon and other top executives prefer, as part of a comprehensive cost-cutting review, the banking giant confirmed on Wednesday.

The use of two Goldman-owned Gulfstream private jets is “one of the most sensitive areas” of spending related to the budget investigation led by the bank’s chief administrative officer Erica Leslie, the Financial Times said, citing people familiar with the matter.

The spending review began as Goldman Sachs prepared to cut about 3,200 jobs this week, a move meant to shore up the struggling bank’s financial position despite declining earnings and a looming economic recession.

“We’re looking at spending across all corners of the firm, so it’s ridiculous to focus on any particular segment or position,” a Goldman Sachs spokesman told The Post.

The bank is struggling to cut costs as it tries to cope with a profitability crisis caused by cuts in investment banking and is struggling with its money-losing customer services arm, Marcus. In addition to using a private jet, Goldman is also looking into the cost of its travel for all bank tellers, conferences and vendors, according to the report.

According to The Post, Goldman Sachs has also eliminated the free coffee perk in its 11^th-floor “Sky Lobby” in the framework of the program to reduce costs.

Worried bankers have called the impending layoffs, the biggest since the Great Recession, “David’s demolition day.”

Goldman is also expected to cut its annual bonus payout by as much as 40%.

Under Solomon’s leadership, Goldman Sachs acquired two Gulfstream aircraft in 2020 to facilitate customer meetings and other business travel for senior management. At the time, the bank said the planes, which reportedly cost tens of millions of dollars each, would be more cost-effective than its old deal with charter company NetJets.

But Solomon has reportedly annoyed his Goldman Sachs subordinates in recent years by using private jets for private purposes.

Bloomberg reported in 2021 that an aircraft installation CEO who moonlights as a DJ has used the Gulfstream for several trips to the Bahamas and the Hamptons. At one point, the publication reported that Solomon had booked seven flights aboard Goldman-owned aircraft over the same number of weekends.

In company filings, Goldman notes that its internal policy “is to limit personal use” of its private jets and “requires reimbursement of the aggregate incremental costs to us.”

In October, Goldman announced a major internal restructuring that merged investment banking and trading operations into one division and moved Marcus into its wealth and wealth division.