Goldman Sachs Group is about to start its annual round of job cuts, moving the exercise to earlier in the year after previous reductions took place in the latter half.
The New York-based bank will look to cut between 3% and 5% of staff — broadly in line with prior culls — according to a person familiar with the matter, who asked not to be identified discussing private information.
Goldman will focus on reducing vice presidents after it added too many in recent years in relation to its overall hiring, the Wall Street Journal reported earlier, citing people familiar with the matter it didn’t identify.
The efinancialcareers website reported the size and timing of the cuts on Monday. A representative for Goldman said the reductions are “part of our normal, annual talent management process” and declined to comment further.
The latest round will take place in the spring this year, following a period where it made layoffs in the second half of the year, the person said. Goldman’s headcount totaled 46,500 at the end of 2024, according to its latest annual filing. The bank had 45,300 staff at the end of 2023, down from 48,500 the year before.
The planned cuts are in line with the bank’s typical approach as it seeks to keep a lid on costs and make room to enlist new talent. The annual exercise was briefly suspended in the middle of the COVID-19 pandemic.
In February, the company erased diversity targets from a key regulatory filing, becoming the latest Wall Street firm to turn away from specific goals for a more representative workforce after an executive order by President Donald Trump.
“We have made certain adjustments to reflect developments in the law in the U.S.,” Chief Executive Officer David Solomon said at the time. “We strongly believe that merit and diversity are not mutually exclusive. Our people are a powerful example of that, and that’s why we will continue to focus on the importance of attracting and retaining diverse, exceptional talent.”
The bank set specific goals in 2020 to achieve representation of 40% women globally in its vice president population; 7% Black professionals in the Americas and the U.K.; and 9% Hispanic/Latinx professionals in the Americas. All three targets had a 2025 deadline but weren’t mentioned in the firm’s annual 10K filing Thursday.
Goldman’s DEI retreat comes after it canceled a mandate for diversity at firms seeking its services on initial public offerings and follows a wave of about-faces on the issue by rivals in the industry. Many of the banks have contracts with the federal government and are subject to an executive order — which is being challenged in court — that bans federal contractors from engaging in “illegal DEI” programs.
Citigroup canceled diversity targets it had set in 2022, also with a 2025 deadline, and said it would no longer require diverse slates of job candidates or interviewers. Bank of America and Wells Fargo & Co. also rolled back similar initiatives.
