Goldman Sachs is planning to cut up to 8% of its employees in January

Goldman Sachs, the storied investment bank, plans on cutting up to 8% of its employees as it girds for a tougher environment next year, according to a person with knowledge of the situation.

The layoffs will impact every division of the bank and will likely happen in January, according to the person, who declined to be identified speaking about personnel decisions.

That’s ahead of an upcoming conference for Goldman shareholders in which management is expected to present performance targets. The New York-based investment bank typically pays bonuses in January, and it’s possible the layoffs could be a way to preserve bonus dollars for remaining employees.

Wall Street is adjusting to a lower revenue environment this year after a two-year boom in deals and hiring sputtered out. Goldman was the first major firm to cut jobs in September, a relatively shallow culling that only impacted a few hundred employees. That was followed by similarly modest cuts at Citigroup and Barclays, though Morgan Stanley cut about 1600 workers last week, CNBC was first to report.

Others to follow?

Hire to fire

Goldman had been in hiring mode previously: the firm had 49,100 workers as of Sept. 30, which is 14% more than a year earlier.

Goldman CEO David Solomon indicated that he was looking to rein in expenses at a conference for financial firms last week.

“We continue to see headwinds on our expense lines, particularly in the near term,” Solomon said. “We’ve set in motion certain expense mitigation plans, but it will take some time to realize the benefits. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set.”

Goldman's job cuts likely won't be the last as Wall Street prepares for winter

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