Discrimination and Layoffs at Goldman Sachs: Your Rights During Restructuring (USA)

Goldman Sachs, with around 45,000 employees, is a major player in the global financial sector and has undergone significant restructuring in recent years. If you work in finance, understanding the legal landscape around layoffs, discrimination, and severance is essential—especially given the industry’s volatility and the high stakes for professionals at all levels.

The Restructuring Landscape at Goldman Sachs

Goldman conducts annual “talent reviews” that often result in workforce reductions. In 2024, the bank laid off between 1,300 and 1,800 employees (about 3–4% of its workforce), following a 2023 reduction of roughly 3,200 positions. These cuts span divisions, from investment banking to technology. The broader financial services industry has also seen thousands of layoffs in 2024, making the environment especially challenging for those affected.

While business needs drive many of these decisions, layoffs can also mask discriminatory practices. Goldman’s history—including the $215 million gender discrimination settlement—shows that even elite institutions are not immune to systemic bias.

The $215 Million Gender Discrimination Settlement

In 2023, Goldman Sachs settled a class action lawsuit (Chen-Oster v. Goldman Sachs) for $215 million, one of the largest gender discrimination settlements in U.S. history. The case, filed in 2010, covered about 2,800 female associates and vice presidents in investment banking, management, and securities. Plaintiffs alleged that Goldman's performance evaluation and promotion systems—specifically the “360 review” and “quartiling” processes—systematically disadvantaged women, resulting in lower ratings, smaller bonuses, and fewer promotions compared to similarly qualified men.

The settlement required Goldman to update its evaluation and promotion systems and bring in independent experts to review these processes. For current employees, this is a clear signal: if you experience gender discrimination in pay, promotions, or evaluations, you have legal options and are not alone.

Your Rights During Layoffs and Restructuring

WARN Act:
The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100+ employees to provide 60 days’ advance notice of mass layoffs (50+ employees at a single site) or plant closings. If Goldman Sachs fails to provide proper notice, affected employees may be entitled to 60 days of back pay and benefits. New York’s WARN Act is even broader.

Anti-Discrimination Laws:
Layoff decisions cannot be based on protected characteristics such as race, color, religion, sex, national origin, age (40+), disability, or genetic information. Even if business reasons exist, the selection process must be non-discriminatory.

Older Workers Benefit Protection Act (OWBPA):
If you’re 40 or older and asked to sign a release of age discrimination claims, Goldman must provide specific disclosures (including ages and job titles of those laid off and retained), give you at least 21 days to consider (45 days for group layoffs), and allow 7 days to revoke after signing.

Employment Agreements:
Review your contract, offer letter, or partnership agreement for terms on termination, severance, and dispute resolution. Arbitration clauses may limit your options.

Recognizing Discrimination in Layoff Decisions

Discrimination can be subtle. Look for:

• Statistical patterns: Are women, older workers, or minorities laid off at higher rates than their representation in the workforce?

• Pretextual reasons: Is the stated reason for your layoff inconsistent with your performance or role? Was your position “eliminated” but then filled by someone outside your protected group?

• Timing: Were you laid off soon after engaging in protected activity (e.g., complaining about discrimination, taking FMLA leave, disclosing a disability)?

• Comments and culture: Did managers make remarks about age, gender, or other protected traits?

• Comparator evidence: Were similarly situated employees outside your protected group retained?

Severance Agreements: What to Watch For

Severance agreements typically require you to release legal claims in exchange for pay and benefits. Key points:

• Scope of release: What claims are you waiving?

• Confidentiality and non-disparagement: Are these clauses mutual?

• OWBPA compliance: For those 40+, did you receive all required disclosures and time to consider?

• Negotiation: Severance is often negotiable, especially if you have potential legal claims.

• Don’t sign under pressure: Take the time you’re entitled to and consider legal review.

Age Discrimination in Financial Services

The ADEA prohibits discrimination against employees 40 and older. Common red flags include:

• Disproportionate layoffs of older workers,

• Comments about “fresh perspectives” or “new blood,”

• Replacing older workers with younger ones,

• Pressure to retire.

OWBPA requires that any waiver of age claims be knowing and voluntary, with specific disclosures and time periods. If these aren’t met, your waiver may be invalid.

Documenting Potential Violations

If you suspect discrimination:

• Before layoff: Save performance reviews, emails, and evidence of strong performance. Note any biased comments or patterns.

• At layoff: Ask for the reason in writing, selection criteria, and OWBPA disclosures (if 40+).

• After layoff: Request your personnel file, document your recollections, identify witnesses, and track subsequent hiring.

Filing Complaints with the EEOC

• Deadlines: File within 180 days (300 days in states with their own agencies, like New York).

• How to file: Online, in person, or by mail.

• What to include: Your and Goldman’s info, protected characteristic, description and dates of discrimination, and why you believe it was discriminatory.

• Arbitration: Many Goldman employees have arbitration agreements. This may affect your litigation options but does not prevent you from filing with the EEOC.

State and local agencies (e.g., NY State Division of Human Rights) may offer additional remedies.

Whistleblower Protections in Finance

• Dodd-Frank Act: Protects employees who report securities law violations to the SEC. Retaliation can result in reinstatement, double back pay, and attorney’s fees.

• Sarbanes-Oxley Act: Protects employees who report fraud or securities violations. Claims must be filed with OSHA within 180 days.

• SEC Whistleblower Awards: If your report leads to sanctions over $1 million, you may be entitled to 10–30% of the recovery.

Document all compliance reports. If you’re laid off after reporting, the timing may support a retaliation claim.

Using Caira to Analyze Severance and Separation Documents

Caira can help you:

• Review severance agreements, releases, and employment contracts,

• Check for OWBPA compliance,

• Understand non-compete and non-solicitation clauses,

• Prepare questions for legal review or negotiation.

Questions to ask Caira:

• “What claims am I waiving by signing?”

• “Does this agreement comply with OWBPA?”

• “What are my rights if I have an arbitration clause?”

Review Checks for Layoffs and Discrimination

• Have I received the reason for my selection in writing?

• Have I reviewed my performance history and documented my qualifications?

• Have I identified how others outside my protected group were treated?

• Have I received all required OWBPA disclosures (if 40+)?

• Do I understand what claims I’m releasing?

• Am I within the deadlines for filing complaints?

• Have I considered whether whistleblower protections apply?

Layoffs at Goldman Sachs and other financial institutions are often legitimate, but not always. The $215 million settlement shows that systemic discrimination can occur even at the highest levels. If you believe your layoff was discriminatory, document everything, review your agreements, and act quickly to protect your rights.

Caira can help. She's delightful to chat to.

She helps you feel more confident and less anxious about employment law issues—whether you’re facing discipline, termination, or just want to understand your rights. Backed by 50,000 legal documents for all 50 states, Caira can:

• Answer your questions instantly 24/7.

• Review and explain emails, policies, or termination letters

• Draft statements or responses for HR or agencies

• Give feedback on your filled-in forms or the other party’s arguments

• Analyze your uploaded documents, screenshots, or pay stubs

• Help you track deadlines and next steps for your state

Try Caira for free—no credit card required.

This information is for educational purposes and is not legal, financial, or tax advice. Outcomes vary depending on the evidence submitted and its strength. Discrimination and employment law are complex and fact-specific.