Goldman Sachs Group Inc. has told employees to be ready for another round of job cuts this year, even as the Wall Street giant posts record profits. The bank is said to be going through a major internal transformation, looking to cut costs across its businesses while using artificial intelligence to make operations smoother and boost long-term growth, Bloomberg reported.
Goldman Sachs prepares for another round of job cuts
In a memo sent to staff on Tuesday, Goldman’s top executives, CEO David Solomon, President John Waldron, and CFO Denis Coleman, discussed their new strategy titled “OneGS 3.0.” The New York-based bank, which caters to government institutions, corporations, and individuals, said it would “constrain headcount growth through the end of the year” and is currently working on a “limited reduction in roles across the firm.” However, Goldman still expects to end 2025 with a net increase in total employees. As of September 30, the bank’s global headcount stood at around 48,300, nearly 2,000 more than a year earlier.
“While we are still in the early innings in terms of assessing where AI solutions can best be deployed, it’s become increasingly clear that our operational efficiency goals need to reflect the gains that will come from these transformational technologies,” David Solomon, President, John Waldron and Denis Coleman said via Bloomberg. In the memo, the executives admitted that it would take several years to fully bring AI into the system as part of their “multiyear effort.” The technology will be used in areas like client onboarding, lending, regulatory reporting, and managing vendors.
Jennifer Zuccarelli, a spokesperson for Goldman, confirmed that the bank plans to finish the year with an overall increase in staff despite the cuts. Goldman registered $15 billion in revenue per share of $12.25 for the July-to-September quarter, leaving Wall Street’s prediction far behind. The bank also earned $2.66 billion in investment banking fees.
Earlier this year, Goldman conducted routine layoffs, cutting about 700 jobs by the end of the second quarter compared to the previous one. Goldman’s announcement comes as other major banks also move to cut costs and restructure. Morgan Stanley is firing around 2,000 employees, roughly 2.5% of its workforce, under new CEO Ted Pick.
‘OneGS 3.0’: Building a faster, smarter Goldman
The memo described “OneGS 3.0” as a long-term plan to boost productivity, profitability, and strengthen resilience through the adoption of AI. “OneGS 3.0 plan would focus on six goals, enhancing the client experience, improving profitability, driving productivity and efficiency, strengthening resilience and capacity to scale, enriching the employee experience, and bolstering risk management,” according to the memo. Executives said AI will be implemented across several key departments, including client onboarding and lending to regulatory reporting and vendor management.
“While we are still in the early stages of determining where AI can best be deployed, it’s increasingly clear that our efficiency goals must reflect the gains these technologies will bring,” the memo said.
The leaders emphasised that this transformation would require “greater speed and agility in all facets” of operations, not just upgrading platforms but also rethinking how teams are organised and decisions are made.
Chief Information Officer Marco Argenti said that “thousands of our people are already using the GS AI Assistant” to enhance productivity. While the tool is intended to make work more efficient, it has also fueled concerns that entry-level and back-office roles could eventually shrink.