Goldman Sachs Terminates Planned Job Reductions in September, According to Financial Times Report
Goldman Sachs Abandons Planned Job Cuts Amid Strong Earnings and Investment Boom
In a surprising turn of events, Goldman Sachs has decided to cancel a second round of planned job cuts this year. The decision comes after the bank posted a profit of $3.72 billion for the period ending June 30, a significant increase from the same period last year.
The earnings amounted to $10.91 per share, exceeding the estimate forecast by analysts at the London Stock Exchange Group. This strong performance is attributed to the surge in investment banking fees and the bank's traders' strong performance. Goldman Sachs currently employs approximately 46,000 people.
The decision to halt the planned job cuts was made during a volatile year for Wall Street, opening with initial optimism around deregulation and dealmaking under President Trump. However, a slowdown in M&A activity was brought about when President Trump threatened to declare a global trade war.
Some insiders attribute the strong trading performance to savvy bets surrounding the "TACO trade" - or wagers that "Trump Always Chickens Out" on his tariff threats. This strategy seems to have paid off, as Goldman Sachs posted a more than 25% year-over-year increase in investment banking fees last week, suggesting confidence in a pipeline of future deals.
Trading has been a bright spot for Goldman Sachs, along with rivals Morgan Stanley and Citi, with the firm benefiting from heightened market volatility in 2025. The bank's trading desks notched $4.3 billion in revenue for the second quarter, about $600 million above analysts' forecasts.
Despite the positive news, there are no available public sources identifying which individuals within Goldman Sachs were involved in the decision to abandon plans for a second round of job cuts in 2025. No comment was provided by a Goldman Sachs spokesperson regarding the decision to cancel the job cuts.
Industrywide investment banking fees have climbed about 2% this year to roughly $67 billion, according to data from the London Stock Exchange Group. This growth, coupled with the bank's strong performance, may indicate a positive outlook for the financial sector.
It's worth noting that the executive team of Goldman Sachs, including CEO David Solomon and COO John Waldron, received $80 million golden handcuffs bonuses earlier this year. Solomon has been under scrutiny for his side-hustle as a house DJ and use of company aircraft, but he has since stopped public performances.
As Goldman Sachs continues to navigate the ever-changing financial landscape, it remains to be seen what the future holds for the institution and its employees. One thing is certain, though - the bank is currently riding a wave of success that has led to the cancellation of the planned job cuts.
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