Goldman Sachs warns of looming layoffs as AI – Business News
Goldman Sachs is making ready for an additional spherical of layoffs as half of a sweeping company overhaul pushed by artificial intelligence, CEO David Solomon’s management crew informed workers in a companywide memo obtained by The Post.
The Wall Street powerhouse will “constrain headcount growth through the end of the year” and perform a “limited reduction in roles across the firm,” in response to the Tuesday memo — the identical day the bank reported report third-quarter earnings.
“Even when the business is performing well, we have an obligation to review our operations carefully and position the firm for the future,” Goldman management wrote.
Goldman Sachs is making ready for an additional spherical of layoffs as half of a sweeping inner overhaul pushed by artificial intelligence, CEO David Solomon’s management crew informed workers in a companywide memo obtained by The Post. AFP by way of Getty Images
“We don’t take these decisions lightly, but this process is part of the long-term dynamism our shareholders, clients, and people expect of Goldman Sachs.”
Goldman’s world headcount stood at 48,300 as of Sept. 30, almost 2,000 more than a yr earlier.
“The firm will finish the year with a net increase in headcount overall,” Jennifer Zuccarelli, a Goldman spokesperson, informed The Post.
News of the memo was first reported by Bloomberg News.
The memo stated the transfer comes as Goldman launches a new section of its “One Goldman Sachs” framework, dubbed OneGS 3.0, a multi-year effort to “transform the operating system for the firm.”
The New York-based bank has been one of the most important 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.
The Wall Street powerhouse will “constrain headcount growth through the end of the year” and perform a “limited reduction in roles across the firm.” Goldman places of work in Manhattan are seen above. Bloomberg by way of Getty Images
But the memo stated the firm’s subsequent section of growth would rely on utilizing AI to spice up productiveness and “re-engineer processes” throughout divisions.
“The rapidly accelerating advancements in AI can unlock significant productivity gains for us,” in response to the memo.
“Our operational efficiency goals need to reflect the gains that will come from these transformational technologies.”
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The memo stated the OneGS 3.0 plan would give attention to six objectives: “enhancing the client experience, improving profitability, driving productivity and efficiency, strengthening resilience and capacity to scale, enriching the employee experience, and bolstering risk management.”
To obtain these targets, he stated, groups will prioritize “front-to-back workstreams” that may benefit from AI-driven course of modifications, together with gross sales enablement, consumer onboarding, lending, regulatory reporting, and vendor management.
“To fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations,” the memo acknowledged.
The New York-based bank has been one of the most important beneficiaries of market volatility this yr, posting $15 billion in income and earnings per share of $12.25 for the July-to-September quarter. REUTERS
“This doesn’t just mean retooling our platforms. It means taking a front-to-back view of how we organize our people, make decisions, and think about productivity and efficiency.”
The memo marks management’s most detailed acknowledgment but that automation is driving structural change throughout Goldman’s business strains.
“Goldman Sachs’ staff cuts, despite strong results, signal caution ahead, as even top banks tighten costs and prepare for a potential slowdown in deal activity,” Eugenia Mykuliak, founder and government director of B2PRIME Group, informed The Post.
“At the same time, AI is playing an increasingly important role — Goldman is reshaping its workforce to take advantage of automation and smarter, AI-driven processes that are gradually transforming how investment banking works.”
In June, The Post reported that Goldman rolled out a new in-house generative AI software, the GS AI Assistant, which is designed to help bankers summarize paperwork, draft studies and analyze knowledge.
Chief data officer Marco Argenti stated on the time that “thousands of our people are already using the GS AI Assistant” to “boost productivity.”
While Goldman stated the technology is meant to make staff more environment friendly, its use has fueled considerations on Wall Street that entry-level and back-office jobs might disappear.
A Bloomberg Intelligence examine earlier this yr predicted that up to 200,000 finance jobs could possibly be misplaced throughout the industry within 5 years as companies undertake AI systems for routine features.
Goldman’s deliberate reductions come as opponents launch sweeping cost-cutting campaigns of their own.
Morgan Stanley is slashing 2,000 positions, about 2.5% of its workforce, below new CEO Ted Pick. The cuts are aimed 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 City workplace this fall, bringing its native whole to more than 400.
Meanwhile, Citigroup is pursuing one of the most important restructurings on Wall Street, trimming 20,000 jobs over two years as CEO Jane Fraser simplifies operations and invests in new technology.
The overhaul, projected to avoid wasting $2.5 billion yearly by 2026, has flattened management layers and positioned divisional leaders in direct contact with the CEO.
