Banking: Goldman Sachs advises employees on plan to divest GM credit card

Goldman Sachs Group Inc. has told employees in its Platform Solutions unit that it’s moving toward a process to find a new issuer for its General Motors credit-card program, The Wall Street Journal reported on Wednesday.

Goldman Sachs

told its credit-card employees in an internal memo they will get a year’s pay if their jobs are eliminated, the newspaper reported.

Goldman Sachs issues credits for both General Motors Co.

and Apple Inc.
but it’s been scaling back its consumer-banking services under a restructuring process launched early this year.

Also read: Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says

The investment bank has been working to cut costs and has decided it was likely to launch a sales process for the credit-card partnership if it was unable to reduce expenses, the report said.

The WSJ also reported recently that Goldman Sachs has held talks with American Express Co.

about taking over both its Apple and GM cards.

Goldman in January disclosed a $3 billion loss since 2020 in its Platform Solutions unit, which houses its credit-card businesses as well as its consumer-lending unit GreenSky, which it’s now selling.

Also read: Goldman explores strategic alternatives for its consumer-banking business