Goldman Sachs Prepares AI-Driven Workforce Restructuring Amid Record Profits

Goldman Sachs is planning a new round of workforce reductions as part of a broader internal overhaul driven by artificial intelligence (AI), according to a companywide memo obtained by The Post. The bank intends to “constrain headcount growth through the end of the year” while implementing a “limited reduction in roles across the firm,” despite reporting record third-quarter profits.

The memo, released Tuesday, explains that the changes are part of the OneGS 3.0 initiative, a multi-year effort to transform the bank’s operations. Goldman executives said the initiative focuses on boosting productivity, enhancing efficiency, and re-engineering processes across divisions using AI technologies.

AI to Reshape Operational Efficiency

The OneGS 3.0 plan outlines six primary goals: enhancing the client experience, improving profitability, driving productivity and efficiency, strengthening resilience and scalability, enriching the employee experience, and bolstering risk management. Key processes identified for AI-driven transformation include client onboarding, sales enablement, lending operations, regulatory reporting, and vendor management.

“To fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations,” the memo stated. Goldman’s management emphasized that the initiative is not merely about retooling platforms but involves reviewing workflows from front to back, restructuring teams, and redefining operational processes for efficiency.

The bank’s new AI tools, including the GS AI Assistant, are designed to help employees summarize documents, draft reports, and analyze data. Thousands of staff members are already using the platform, which management says improves productivity but also signals that some routine roles may be automated in the future.

Record Profits Amid Workforce Restructuring

Goldman Sachs reported $15 billion in revenue and earnings per share of $12.25 for the July-to-September quarter, exceeding market expectations. Despite strong results, the bank is moving ahead with its workforce review, citing the need to position the company for future growth and technological advancements.

The memo stressed that the workforce reductions are intended to reflect long-term operational efficiency goals, ensuring that AI and automation can be effectively leveraged across the firm’s global operations.

Industry-Wide Cost-Cutting Trend

Goldman Sachs announcement aligns with a broader trend of cost-cutting across Wall Street as banks adopt AI and automation to improve efficiency. Morgan Stanley is cutting 2,000 jobs, or 2.5% of its workforce, while Citigroup is restructuring 20,000 positions over two years to simplify operations and invest in technology. JPMorgan Chase has carried out multiple rounds of layoffs in 2025, totaling more than 400 positions in its Jersey City office alone.

Industry analysts note that automation and AI tools are gradually reshaping back-office and entry-level roles across investment banks. A Bloomberg Intelligence study projected that as many as 200,000 finance jobs could be affected within five years as AI systems increasingly handle routine tasks.

Preparing for a Technology-Driven Future

Goldman Sachs executives emphasized that the workforce changes are part of a long-term strategy to maintain competitiveness and adapt to evolving technology trends. The bank highlighted that AI and automation will unlock productivity gains while enabling employees to focus on higher-value tasks.

Management noted that while these changes may affect some roles, the overall headcount is still expected to increase by the end of the year, reflecting the firm’s continued growth and expansion in strategic areas.

By focusing on AI-driven efficiency, Goldman Sachs aims to position itself as a more agile and technologically advanced financial institution, capable of navigating a rapidly evolving market while sustaining profitability.