Goldman Sachs Mulls Job Cuts As Part Of An AI-Driven Makeover
The employees were also informed of a restriction in headcount growth and that the new job cuts could take place by the end of the calendar year, it said.
Goldman Sachs may soon implement a fresh round of jobs cuts as the firm gears up for a makeover that will revolve around artificial intelligence. Employees have already received a memo stating that the bank will carry out 'limited reduction in roles across the firm', Bloomberg reported.
This is part of Goldman Sachs' “OneGS 3.0” strategy, which is aiming to boost the firm's productivity and shift to more technology-driven roles. By doing so, the bank is looking to cut costs.
The employees were also informed of a restriction in headcount growth and that the new job cuts could take place by the end of the calendar year, it said.
The total headcount at Goldman Sachs was around 48,300 at the end of September, which is 1,800 higher than what it was at the same time last year.
Despite the jobs cuts, it appears the bank is well on its way to end the year with an increase in overall headcount.
The crux of the note to employees, though, was the bank's “OneGS 3.0” strategy, which will look to leverage the full capability of AI, as per the report.
“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,” Chief Executive Officer David Solomon, President John Waldron and Chief Financial Officer Denis Coleman said in the memo, it said.
Earlier this year, Goldman Sachs cut jobs in what was a routine annual exercise. But as AI takes over the banking ecosystem, it won't be surprising to see other large banks joining the bandwagon of more AI and less people.
In the recent past, even airline company Lufthansa said it would cut 4,000 jobs by 2030 due to the integration of AI and automation in the aviation space.
