Goldman Sachs' consumer-banking unit Marcus has halted hiring plans — at least for back-end roles like engineering, design, and product gigs — and has no plans to use recruiters through the end of this year, a person familiar with Marcus' hiring ambitions told me.
Goldman Sachs executives are concerned that too much money is being spent on Marcus. David Solomon, the bank's chief executive, now faces the difficult decision over what is next for the consumer-banking unit.
Insider's Dakin Campbell, who has written extensively about Marcus, has the latest on Solomon's effort to bring Goldman Sachs to Main Street.
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David Solomon is the CEO of Goldman Sachs. Michael Kovac/Getty Images
1. Goldman Sachs is thinking what was once unthinkable. The bank may pivot its ambitions for Marcus — the consumer-banking unit named after founder Marcus Goldman — in a bid to stem burgeoning costs.
A pivot, in any way, shape, or form, for Marcus is a hammer blow to Chief Executive David Solomon, who has championed the roll-out of the consumer bank.
John Waldron, Goldman Sachs' president and Solomon's longtime lieutenant, reckons the bank needs to rethink its approach to Marcus, and more importantly, how it spends the money being invested in the initiative.
A shift in the consumer business carries risk for Solomon, who has made Marcus one of the key pillars in his strategy to lead Goldman Sachs into the future.
Marcus is housed under Goldman Sachs' consumer and wealth-management arm, which is run by Stephanie Cohen and Tucker York.
Solomon tapped Cohen to craft the digital bank. But she has been on leave for several months. While Cohen has been in regular contact with Solomon, Waldron, and divisional cohead Tucker York, a number of Goldman insiders have wondered where she is at such a critical juncture for Marcus.
Read the full story here.
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Curated by Aaron Weinman in New York. Tips? Email email@example.com or tweet @aaronw11 . Edited by Hallam Bullock (tweet @hallam_bullock ) in London.