Goldman Sachs is making ready for one more spherical of layoffs as a part of a sweeping company overhaul pushed by synthetic intelligence, CEO David Solomon’s administration workforce instructed employees in a companywide memo obtained by The Submit.
The Wall Road powerhouse will “constrain headcount progress by means of the tip of the yr” and perform a “restricted discount in roles throughout the agency,” in response to the Tuesday memo — the identical day the financial institution reported file third-quarter income.
“Even when the enterprise is performing nicely, we now have an obligation to overview our operations fastidiously and place the agency for the long run,” Goldman administration wrote.
“We don’t take these choices calmly, however this course of is a part of the long-term dynamism our shareholders, shoppers, and folks anticipate of Goldman Sachs.”
Goldman’s international headcount stood at 48,300 as of Sept. 30, almost 2,000 greater than a yr earlier.
“The agency will end the yr with a internet improve in headcount general,” Jennifer Zuccarelli, a Goldman spokesperson, instructed The Submit.
Information of the memo was first reported by Bloomberg Information.
The memo stated the transfer comes as Goldman launches a brand new part of its “One Goldman Sachs” framework, dubbed OneGS 3.0, a multi-year effort to “rework the working system for the agency.”
The New York-based financial institution has been one of many greatest beneficiaries of market volatility this yr, posting $15 billion in income and earnings per share of $12.25 for the July-to-September quarter — each nicely forward of forecasts.
However the memo stated the agency’s subsequent part of progress would rely on utilizing AI to spice up productiveness and “re-engineer processes” throughout divisions.
“The quickly accelerating developments in AI can unlock important productiveness good points for us,” in response to the memo.
“Our operational effectivity targets have to mirror the good points that can come from these transformational applied sciences.”
The memo stated the OneGS 3.0 plan would give attention to six targets: “enhancing the consumer expertise, enhancing profitability, driving productiveness and effectivity, strengthening resilience and capability to scale, enriching the worker expertise, and bolstering threat administration.”
To realize these targets, he stated, groups will prioritize “front-to-back workstreams” that may profit from AI-driven course of adjustments, together with gross sales enablement, consumer onboarding, lending, regulatory reporting, and vendor administration.
“To totally profit from the promise of AI, we’d like higher velocity and agility in all sides of our operations,” the memo acknowledged.
“This doesn’t simply imply retooling our platforms. It means taking a front-to-back view of how we set up our folks, make choices, and take into consideration productiveness and effectivity.”
The memo marks administration’s most detailed acknowledgment but that automation is driving structural change throughout Goldman’s enterprise traces.
“Goldman Sachs’ employees cuts, regardless of robust outcomes, sign warning forward, as even high banks tighten prices and put together for a possible slowdown in deal exercise,” Eugenia Mykuliak, founder and government director of B2PRIME Group, instructed The Submit.
“On the similar time, AI is taking part in an more and more necessary position — Goldman is reshaping its workforce to reap the benefits of automation and smarter, AI-driven processes which might be regularly remodeling how funding banking works.”
In June, The Submit reported that Goldman rolled out a brand new in-house generative AI software, the GS AI Assistant, which is designed to assist bankers summarize paperwork, draft stories and analyze knowledge.
Chief data officer Marco Argenti stated on the time that “1000’s of our individuals are already utilizing the GS AI Assistant” to “increase productiveness.”
Whereas Goldman stated the expertise is meant to make workers extra environment friendly, its use has fueled considerations on Wall Road that entry-level and back-office jobs might disappear.
A Bloomberg Intelligence examine earlier this yr predicted that as much as 200,000 finance jobs may very well be misplaced throughout the business inside 5 years as corporations undertake AI methods for routine features.
Goldman’s deliberate reductions come as rivals launch sweeping cost-cutting campaigns of their very own.
Morgan Stanley is slashing 2,000 positions, about 2.5% of its workforce, underneath new CEO Ted Decide. The cuts are geared toward curbing bills after a yr of slowing deal exercise and minimal attrition.
JPMorgan Chase has disclosed 4 rounds of layoffs in 2025, together with 88 staffers at its Jersey Metropolis workplace this fall, bringing its native complete to greater than 400.
In the meantime, Citigroup is pursuing one of many largest restructurings on Wall Road, trimming 20,000 jobs over two years as CEO Jane Fraser simplifies operations and invests in new expertise.
The overhaul, projected to save lots of $2.5 billion yearly by 2026, has flattened administration layers and positioned divisional leaders in direct contact with the CEO.
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