- Goldman Sachs is reviewing spending on its private jets as it begins a series of layoffs.
- A company spokesperson said the bank is looking at expenses across the company.
- Goldman first bought the two jets in 2019, and its CEO has made headlines for using them for personal getaways.
Goldman Sachs is reviewing spending across the company — including costs associated with its private jets, a company spokesperson confirmed to Insider.
The Financial Times, which was the first to report the news, wrote that Goldman Sach’s chief administrative officer, Ericka Leslie, was leading the review, which included expenses associated with conferences, outside vendors, and general travel. Sources told the FT that private jet travel was one of the more sensitive areas the executive was investigating.
“We’re looking at expenses in every corner of the firm, so it’s ridiculous to focus on any single segment or line item,” the Goldman Sachs spokesperson told Insider.
The bank is launching the cost-cutting measures as it begins a series of layoffs that will impact over 3,000 roles at the company. Investment bankers at Goldman Sachs are also anticipating a dip of at least 40% in their yearly bonuses, per the FT. Other cutbacks include eliminating a free-coffee perk at its Sky Lobby in Manhattan, The New York Post reported on Monday.
The bank first bought its two private jets, a Gulfstream G650 and G280 in 2019, Bloomberg reported. The publication said the jets typically sell for tens of millions of dollars. At the time of purchase, the bank said the planes would help lower costs as senior executives at the firm used private jets to see clients. Previously, the company had a contract to charter planes with NetJets.
The Gulfstream planes are powered by Rolls-Royce engines and feature multiple cabins, and the G650 is one of the most spacious jets on the market.
In 2021, Bloomberg reported that Goldman Sachs CEO David Solomon had booked multiple weekend getaways on the company’s private jets, including trips to the Bahamas and the Hamptons. At the time, multiple employees told the publication they felt the CEO appeared out of touch as he pushed for workers to return to the office while taking the company jet on seven getaways in seven consecutive weeks, per Bloomberg.
Last year, Insider reported that Solomon had used the jet for a side gig as a DJ at the Lollapalooza music festival.
Under the bank’s policy, executives are required to reimburse Goldman Sachs for any costs associated with personal elements of the trip, but the bank does not publicly disclose those expenses.
Goldman Sachs is far from the only bank to own private jets. Both Morgan Stanley and JPMorgan have multiple private jets — a perk that became more popular during the pandemic. Last year, FT reported that company spending on private jets for personal use hit a 10-year high in 2021.