Goldman Sachs Group Inc. Told staffers to expect an additional round of job cuts this year as the bank seeks further savings across its businesses and takes advantage of the opportunities presented by artificial intelligence.
The New York-based firm said it would “constrain headcount growth through the end of the year” and is planning a “limited reduction in roles across the firm,” according to a memo to staff Tuesday morning seen by Bloomberg News.
Still, the firm expects to finish the year with an increase in overall headcount, Jennifer Zuccarelli, a spokesperson for the bank, added by phone. The firm’s headcount was 48,300 at the end of September, about 1,800 more employees than at the end of last year.
In the note to staff, which announced the launch of the bank’s “OneGS 3.0” strategy, top executives touted the efficiency gains produced by AI as a path to more growth. They added that it would be a “multiyear effort” to implement AI in areas such as client on-boarding, lending processes, regulatory reporting and vendor management.
“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,” Chief Executive Officer David Solomon, President John Waldron and Chief Financial Officer Denis Coleman said in the memo.
For Goldman to “fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations,” they added. “This doesn’t just mean retooling our platforms.”
Goldman shares fell earlier Tuesday after the bank reported higher expenses in its third-quarter results, though it also posted a jump in investment-banking revenue that outpaced rivals.
The bank cut jobs earlier this year in its normal annual exercise, with net headcount 700 lower at the end of the second quarter than three months earlier.