Use AI to cut costs! Goldman Sachs notifies employees: a new round of layoffs is planned for this year

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On Tuesday, Goldman Sachs notified employees that there will be a new round of layoffs this year, as the bank seeks to further cut costs across various business sectors and take advantage of new opportunities brought by artificial intelligence.

Goldman Sachs stated that it will limit headcount growth before the end of this year and plans to moderately reduce the number of positions company-wide. Goldman Sachs spokesperson Jennifer Zuccarelli added that the company still expects a net increase in total headcount for the full year. As of the end of September, Goldman Sachs had 48,300 employees, about 1,800 more than at the end of last year.

In a memo to employees, Goldman Sachs announced the launch of the “OneGS 3.0” strategy. Senior management emphasized in the letter that the efficiency gains brought by artificial intelligence will become a key path for further company growth. In the future, the application of AI will be rolled out in stages across areas such as client onboarding, loan processes, compliance reporting, and vendor management. This will be a multi-year effort.

Goldman Sachs CEO David Solomon, President John Waldron, and CFO Denis Coleman wrote in the memo:

“Although we are still in the early stages of evaluating the best application scenarios for AI solutions, it is clear that our operational efficiency targets must reflect the potential benefits brought by these transformative technologies.”

In order for Goldman Sachs to fully benefit from AI’s potential, we must achieve greater speed and flexibility in every aspect of operations. This is not just about transforming platforms.

Earlier that day, after Goldman Sachs released its third-quarter financial report, its stock price temporarily fell. Although the bank had increased expenses, investment banking revenues surged, surpassing some competitors.

Earlier this year, Goldman Sachs already held annual routine layoffs, with net headcount reduced by 700 by the end of the second quarter compared to the previous three months.

With the rapid development and widespread application of artificial intelligence, more and more executives now view layoffs as a sign of corporate progress. Achieving higher profits with fewer people has become a core strategic direction for many companies. Businesses are preparing for a future where workforce demand may be greatly reduced.

As the wave of AI-driven layoffs intensifies, it has become even more difficult for young people just entering the workforce to find jobs. Data shows that in just the first seven months of this year, more than 10,000 positions in the United States were cut due to generative AI, especially impacting entry-level positions the most.

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