Goldman Sachs Shifts from Annual Mass Layoffs to Smaller, Rolling Job Cuts in 2025
In a significant departure from its long-standing corporate practice, Goldman Sachs is now changing its approach to workforce management by opting for a series of smaller, rolling job cuts throughout 2025 instead of conducting large-scale annual layoffs. According to a detailed report by Business Insider, the Wall Street banking giant will begin trimming its staff starting in April, with additional reductions expected to continue through the summer months.
End of the Strategic Resource Assessment Era
Goldman Sachs has historically conducted what it calls 'Strategic Resource Assessment' (SRA) exercises during both the spring and fall seasons, typically cutting up to 5% of its global workforce in a single round. This traditional process could eliminate thousands of positions simultaneously, creating significant organizational disruption. However, this year marks a strategic pivot as the bank is deliberately skipping its spring SRA entirely in favor of implementing multiple smaller rounds of workforce adjustments.
This new approach offers divisional leaders substantially more flexibility over timing and execution, allowing for more nuanced workforce management that better aligns with specific business unit needs and performance metrics.
Job Cuts to Affect Multiple Divisions
The Business Insider report indicates that the upcoming job cuts at Goldman Sachs will impact all divisions across the organization, including its renowned investment banking powerhouse and the rapidly expanding asset and wealth management unit. However, these reductions will be notably smaller in scale compared to the substantial round conducted in March of last year, which targeted approximately 2,300 positions.
The company has not yet disclosed the final number of positions that will be affected by these rolling cuts. A Goldman Sachs spokesperson addressed the changes by stating: "Regular, consistent head count management is nothing out of the ordinary for a public company. We are constantly assessing our performance and talent across divisions."
Layoffs Not Connected to "One Goldman Sachs" Strategy
Sources familiar with the matter told Business Insider that these workforce reductions are not directly linked to Goldman's comprehensive "One Goldman Sachs" initiative, which was announced last October. That strategic program focuses primarily on integrating various business lines and driving operational efficiency through artificial intelligence implementation.
While the "One Goldman Sachs" initiative did include some limited role reductions, its broader objective centered on streamlining operations and enhancing cross-divisional collaboration rather than serving as a vehicle for significant workforce reduction.
Strong Financial Performance Amid Strategic Shift
Goldman Sachs reported impressive financial results for 2025, with revenue reaching $58 billion—representing a substantial 9% increase from the previous year. This robust performance underscores that the current workforce adjustments are not being driven by financial distress or declining business fundamentals.
Instead, the shift toward smaller, rolling job cuts reflects an evolving approach to how the bank manages underperformers and optimizes workforce efficiency in a changing economic landscape. The move aligns with broader industry trends toward more continuous workforce optimization rather than periodic mass reductions.
Broader Industry Context
Goldman Sachs' strategic shift occurs against a backdrop of widespread industry downsizing across multiple sectors. Major financial institutions like Citi and technology giants including Amazon have announced workforce reductions totaling approximately 16,000 roles so far this year. Additionally, prominent software firms such as Atlassian and Block have implemented their own staff trimming initiatives, indicating a broader trend toward more agile workforce management strategies in today's competitive business environment.
