Goldman Sachs is preparing for another round of layoffs as part of a sweeping corporate overhaul driven by artificial intelligence, CEO David Solomon’s management team told staff in a companywide memo obtained by The Post.
The Wall Street powerhouse will “constrain headcount growth through the end of the year” and carry out a “limited reduction in roles across the firm,” according to the Tuesday memo — the same day the bank reported record third-quarter profits.
“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.
“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 global headcount stood at 48,300 as of Sept. 30, nearly 2,000 more than a year earlier.
“The firm will finish the year with a net increase in headcount overall,” Jennifer Zuccarelli, a Goldman spokesperson, told The Post.
News of the memo was first reported by Bloomberg News.
The memo said the move comes as Goldman launches a new phase 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 biggest beneficiaries of market volatility this year, posting $15 billion in revenue and earnings per share of $12.25 for the July-to-September quarter — both well ahead of forecasts.
But the memo said the firm’s next phase of growth would depend on using AI to boost productivity and “re-engineer processes” across divisions.
“The rapidly accelerating advancements in AI can unlock significant productivity gains for us,” according to the memo.
“Our operational efficiency goals need to reflect the gains that will come from these transformational technologies.”
The memo said the 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.”
To achieve those targets, he said, teams will prioritize “front-to-back workstreams” that can benefit from AI-driven process changes, including sales enablement, client 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 stated.
“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 yet that automation is driving structural change across Goldman’s business lines.
In June, The Post reported that Goldman rolled out a new in-house generative AI tool, the GS AI Assistant, which is designed to help bankers summarize documents, draft reports and analyze data.
Chief information officer Marco Argenti said at the time that “thousands of our people are already using the GS AI Assistant” to “boost productivity.”
While Goldman said the technology is intended to make employees more efficient, its use has fueled concerns on Wall Street that entry-level and back-office jobs could disappear.
A Bloomberg Intelligence study earlier this year predicted that up to 200,000 finance jobs could be lost across the industry within five years as firms adopt AI systems for routine functions.
Goldman’s planned reductions come as competitors launch sweeping cost-cutting campaigns of their own.
Morgan Stanley is slashing 2,000 positions, about 2.5% of its workforce, under new CEO Ted Pick. The cuts are aimed at curbing expenses after a year of slowing deal activity and minimal attrition.
JPMorgan Chase has disclosed four rounds of layoffs in 2025, including 88 staffers at its Jersey City office this fall, bringing its local total to more than 400.
Meanwhile, Citigroup is pursuing one of the largest 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 save $2.5 billion annually by 2026, has flattened management layers and placed divisional leaders in direct contact with the CEO.
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