Goldman Sachs has informed its staff to brace for another round of job cuts this year as the bank aims to achieve additional cost savings while leveraging the potential of AI.
Bloomberg reports that in a memo to employees this week, the New York-based financial giant announced its plans to “constrain headcount growth through the end of the year” and implement a “limited reduction in roles across the firm.”
The company’s total headcount stood at 48,300 at the end of September, representing an increase of approximately 1,800 employees compared to the end of the previous year. Top executives at the bank highlighted the efficiency gains that can be achieved through the use of AI technology, presenting it as a pathway to further growth. They emphasized that implementing AI solutions across various areas of the business, such as client onboarding, lending processes, regulatory reporting, and vendor management, would be a “multiyear effort.”
The memo, signed by CEO David Solomon, President John Waldron, and CFO Denis Coleman, stated, “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.”
The executives further stressed the importance of “greater speed and agility in all facets of our operations” for Goldman Sachs to fully capitalize on the potential of AI. They added, “This doesn’t just mean retooling our platforms.”
Earlier on Tuesday, Goldman Sachs shares experienced a decline following the release of the bank’s third-quarter results, which revealed higher expenses. However, the bank also reported a significant increase in investment-banking revenue, outperforming its competitors on Wall Street.
This is not the first time Goldman Sachs has resorted to job cuts. Earlier this year, the bank underwent its routine annual exercise of reducing its workforce, resulting in a net decrease of 700 employees by the end of the second quarter compared to three months prior.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
