Goldman Sachs to begin layoffs under new ‘OneGS 3.0’ plan

The Wall Street giant has informed employees to brace for job cuts this year, despite recently posting record profits. The move is part of a larger internal transformation aimed at cutting costs and leveraging artificial intelligence to streamline operations and support long-term growth. 

In a memo to staff on Tuesday, top executives, CEO David Solomon, President John Waldron, and CFO Denis Coleman, unveiled a new strategy titled “OneGS 3.0.” 

The memo said it would “constrain headcount growth through the end of the year” while initiating a “limited reduction in roles across the firm.” Despite this, GS expects to end 2025 with a net increase in total employees. As of September 30, the bank’s global workforce stood at around 48,300, nearly 2,000 higher than a year ago. 

“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,” Solomon, Waldron, and Coleman said via Bloomberg. 

They acknowledged that fully integrating AI into the system would be a “multiyear effort,” with the technology expected to enhance areas such as client onboarding, lending, regulatory reporting, and vendor management. 

Goldman spokesperson Jennifer Zuccarelli confirmed that the bank still plans to finish the year with an overall increase in staff despite the cuts. The company posted strong financial results for the July–September quarter, recording $15 billion in revenue and $12.25 per share earnings, far surpassing Wall Street estimates. The bank also reported $2.66 billion in investment banking fees. 

Earlier this year, Goldman carried out routine layoffs, cutting around 700 jobs by the end of the second quarter. The “OneGS 3.0” plan is designed as a long-term roadmap to strengthen the bank’s resilience, productivity, and profitability through AI-driven transformation. 

According to the memo, the initiative focuses on six key goals: enhancing client experience, improving profitability, driving productivity and efficiency, strengthening resilience and scalability, enriching employee experience, and bolstering risk management. 

“While we are still in the early stages of determining where AI can best be deployed, it’s increasingly clear that our efficiency goals must reflect the gains these technologies will bring,” the memo added. The leadership team highlighted that the transformation would demand “greater speed and agility in all facets” of operations, not just in upgrading systems, but in how teams are organized and decisions are made. 

Chief Information Officer Marco Argenti shared that “thousands of our people are already using the GS AI Assistant” to improve productivity. While the tool is expected to make work faster and more efficient, it has also raised concerns that entry-level and back-office roles could eventually shrink as automation expands. 

The announcement comes as other major banks also tighten operations, Morgan Stanley, for instance, is reportedly cutting about 2,000 roles (roughly 2.5% of its workforce) under new CEO Ted Pick.