Goldman Sachs Warns Employees of More Job Cuts Amid AI Push
Goldman Sachs has informed staff to expect additional job cuts before year-end as the bank seeks to leverage artificial intelligence for greater efficiency and cost savings.
Key Takeaways
- Limited role reductions planned across the firm
- Headcount growth to be constrained through December
- AI-driven efficiency gains expected to transform operations
- Despite cuts, overall headcount expected to increase for full year
Staff Reductions and Headcount Outlook
The New York-based firm plans a “limited reduction in roles across the firm” and will “constrain headcount growth through the end of the year,” according to an internal memo cited by Bloomberg.
Despite the planned cuts, bank spokesperson Jennifer Zuccarelli stated that Goldman Sachs expects to finish 2023 with an overall increase in headcount. The firm’s total employment stood at 48,300 at the end of September, representing an increase of approximately 1,800 employees since the end of 2022.
OneGS 3.0 Strategy and AI Transformation
The memo announced the bank’s new “OneGS 3.0” strategy, highlighting AI-driven efficiency gains as a path to greater growth. Top executives emphasized that implementing AI across client onboarding, lending processes, regulatory reporting, and vendor management would be a “multiyear effort.”
“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,” CEO David Solomon, president John Waldron and CFO Denis Coleman said in the memo.
The executives stressed that for Goldman to “fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations,” which involves more than just retooling their platforms.
Previous Workforce Adjustments
The planned reduction follows job cuts earlier this year during the bank’s normal annual exercise, which saw net headcount reduced by 700 during the second quarter.
