Goldman Sachs has notified employees to prepare for another round of job cuts as the bank pushes to tighten costs and integrate artificial intelligence into its operations.
According to a memo sent to staff this week, the Wall Street giant stated it will “constrain headcount growth through the end of the year” and conduct a “limited reduction in roles across the firm.” The memo, signed by CEO David Solomon, President John Waldron, and CFO Denis Coleman, emphasized the role of AI in reshaping the bank’s future operations.
Goldman Sachs reported having 48,300 employees at the end of September—up about 1,800 from the previous year. However, executives said operational efficiency must improve, and AI will play a key role in that transition. Areas like client onboarding, loan processing, regulatory compliance, and vendor management are expected to benefit from AI-driven streamlining.
“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,” the memo stated.
The company is portraying this shift as a multiyear effort, requiring what it called “greater speed and agility in all facets of our operations.”
Earlier this year, Goldman Sachs cut roughly 700 jobs during its annual workforce review. Now, these new layoffs appear to be part of a broader strategy to balance rising expenses with the promise of AI-driven efficiencies.
The memo comes days after Goldman’s third-quarter earnings report, which showed higher expenses even as investment banking revenue rose. Shares dipped following the report, increasing pressure on leadership to boost profitability.
Goldman joins other major financial institutions reevaluating their workforce needs in the age of AI.
