Goldman Sachs puts brakes on layoffs after strong – Business News
Goldman Sachs has determined to scrap a second spherical of deliberate job cuts this yr after its investment banking unit produced stronger-than-expected outcomes within the second quarter, in keeping with a report..
A surge in investment banking charges and one other stellar efficiency by the David Solomon-led lender’s merchants satisfied the bank’s high brass to pause plans for any performance-related layoffs, in keeping with the Financial occasions, which cited unnamed people aware of the matter.
The cuts had been pencilled in for September if there was any extreme financial turmoil from President Trump’s tariff and commerce coverage, the FT added.
The latest strong efficiency by Goldman Sachs could possibly be seen as a vindication by the bank’s high brass handy CEO David Solomon an $80 million, five-year ‘golden handcuffs’ deal. AFP through Getty Images
The Wall Street giant, primarily based at 200 West St. in decrease Manhattan, presently employs roughly 46,000 people.
A Goldman Sachs spokesperson declined to remark.
In March, the bank moved to trim roughly 3% to five% of its workforce in what it referred to as on the time a “strategic resource assessment.”
Layoffs of this type are a common characteristic within the finance industry when corporations look to rein in bills and boot out underperformers.
Goldman posted a $3.72 billion revenue for the period ending June 30 when it launched its second-quarter outcomes final week.
It amounted to earnings of $10.91 per share, blowing previous the estimate forecast by analysts on the London Stock Exchange Group of $9.53 per share.
Goldman merchants have raked in large income from the financial turmoil sparked by President Trump’s Liberation Day tariffs. REUTERS
The strong numbers could possibly be seen as a vindication for the transfer to award Solomon and his lieutenant, chief working officer John Waldron, $80 million golden handcuffs bonuses earlier this yr.
Solomon has been below fire in recent times for his controversial side-hustle as a home DJ and his use of company plane, though the 63-year-old has since stepped back from spinning data in public.
The choice to halt the deliberate job cuts comes during a unstable yr for Wall Street. 2025 opened with initial optimism round deregulation and dealmaking below Trump.
Solomon was one of the CEOs current at President Trump’s ‘Invest in America’ occasion in Washington, DC, final month. AP
But a slowdown in M&A exercise was led to when the commander-in-chief threatened to declare a world commerce conflict, singling out many of the US’s trading companions that he believed had handled this nation unfairly.
Goldman final week additionally posted a more than 25% year-over-year increase in investment banking charges, suggesting that executives are assured about a pipeline of offers that will probably be struck as soon as the White House has inked recent trading preparations with dozens of international locations.
According to information from the London Stock Exchange Group, industrywide investment banking charges have climbed about 2% this yr to roughly $67 billion.
Trading has additionally been a shiny spot for Goldman, together with rivals Morgan Stanley and Citi, with the firm benefiting from heightened market volatility in 2025 that has fueled demand for equity and fixed-income trading providers.
The financial giant’s trading desks notched $4.3 billion in income for the second quarter — about $600 million above analysts’ forecasts — with some insiders citing savvy bets surrounding the so-called “TACO trade” — or wagers that “Trump Always Chickens Out” on his tariff threats.
