Goldman Sachs Plans More Job Cuts to Curb Rising Costs

Goldman Sachs is preparing for a new round of job cuts before the end of the year, a strategic move aimed at controlling rising costs and improving profitability in a challenging market. The decision follows a third-quarter report that, despite beating earnings expectations, raised investor concerns over a significant increase in operating expenses.

The firm’s , a 14% increase compared to the same period last year. The rise was driven primarily by higher compensation and benefits, transaction-based costs, and increased provisions for litigation. While the bank's efficiency ratio has improved year-over-year, the sharp increase in quarterly spending has prompted management to take further action on headcount.

According to a report from of the impending cuts. This move is part of a broader trend across the financial industry, which is grappling with a post-boom slowdown. Many firms are now correcting for the aggressive hiring that occurred in 2021, a period of high deal activity that cooled after central banks began raising interest rates.

This so-called has led to workforce reductions at several major institutions. Morgan Stanley, Bank of America, and Citigroup have all announced or initiated job cuts in 2025 as they adjust to a more subdued economic environment. Data from March 2025 showed that layoffs on Wall Street had outpaced new hiring for the nineteenth consecutive month, underscoring the sector-wide focus on cost discipline.

Looking ahead, the pressure on staffing levels in the financial sector is likely to continue. The increasing adoption of , with analysts predicting that automation could displace tens of thousands of roles in back-office, operations, and customer service functions over the next few years. For Goldman Sachs, the planned cuts represent another step in its ongoing effort to navigate market volatility and maintain its competitive edge.