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.

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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 its possible the layoffs could be a way to preserve bonus dollars for remaining employees.

The bank’s planning is ongoing, and the round could be smaller than 8% when it is finalized, the person added. But that means as many as about 4,000 employees could be impacted, as reported by Semafor earlier Friday. Goldman had been in hiring mode previously: the firm had 49,100 workers as of September 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.”

This story is developing. Please check back for updates.