Goldman Sachs to begin job cuts in April
What's the story
Goldman Sachs, the renowned Wall Street bank, is gearing up for a series of job cuts starting next month, according to Business Insider. The move marks a shift from its traditional practice of conducting head-count reductions in both spring and fall. Instead of one big culling, the bank will now carry out smaller, rolling layoffs over several months.
Strategy shift
Traditional annual headcount reduction
Goldman Sachs has been known for its annual headcount reduction, often cutting thousands of positions by letting go of what it considers the bottom 5% of its global workforce. However, this year, the bank is skipping its usual spring "Strategic Resource Assessment" (SRA) in favor of a series of smaller cuts. The first round is expected next month with more layoffs continuing through summer.
Efficiency focus
New layoff strategy at Goldman Sachs
The new layoff strategy at Goldman Sachs is aimed at giving divisional leaders more control over timing. This way, they won't have to wait months for the next firmwide review. The cuts will affect all business lines, from its investment bank to asset and wealth management unit. However, they are likely to be much fewer than last year's cuts which could have affected up to 2,300 jobs.
Official statement
Goldman Sachs responds to layoff speculations
A Goldman Sachs spokesperson said, "Regular, consistent head count management is nothing out of the ordinary for a public company." The spokesperson added that the bank is constantly assessing our performance and talent across the bank's divisions. However, they did not comment on specific headcount targets for workforce reduction actions.
Strategy clarification
Job cuts not related to 'One Goldman Sachs' strategy
The planned job cuts at Goldman Sachs are not related to its latest version of the "One Goldman Sachs" strategy, which was unveiled in October. The firmwide initiative aims to integrate its businesses and drive efficiency through AI. In its latest earnings report for 2025, Goldman Sachs posted a revenue of over $58 billion, up 9% from the prior year.