Goldman Sachs has determined to scrap a second spherical of deliberate job cuts this yr after its investment banking unit produced stronger-than-expected outcomes in the second quarter, according to a report..
A surge in investment banking charges and another stellar efficiency by the David Solomon-led lender’s merchants satisfied the bank’s prime brass to pause plans for any performance-related layoffs, according to the Financial instances, which cited unnamed people acquainted with the matter.
The cuts had been pencilled in for September if there was any extreme financial turmoil from President Trump’s tariff and commerce coverage, the FT added.
The latest sturdy efficiency by Goldman Sachs could be seen as a vindication by the bank’s prime brass to hand CEO David Solomon an $80 million, five-year ‘golden handcuffs’ deal. AFP via Getty Images
The Wall Street giant, primarily based at 200 West St. in decrease Manhattan, presently employs roughly 46,000 people.
A Goldman Sachs spokesperson declined to remark.
In March, the bank moved to trim roughly 3% to 5% of its workforce in what it called at the time a “strategic resource assessment.”
Layoffs of this variety are a common characteristic in the finance industry when companies look to rein in bills and boot out underperformers.
Goldman posted a $3.72 billion revenue for the period ending June 30 when it launched its second-quarter outcomes last week.
It amounted to earnings of $10.91 per share, blowing previous the estimate forecast by analysts at the London Stock Exchange Group of $9.53 per share.
Goldman merchants have raked in big earnings from the financial turmoil sparked by President Trump’s Liberation Day tariffs. REUTERS
The sturdy numbers could be seen as a vindication for the transfer to award Solomon and his lieutenant, chief working officer John Waldron, $80 million golden handcuffs bonuses earlier this yr.
Solomon has been under fire in latest years for his controversial side-hustle as a home DJ and his use of company plane, although the 63-year-old has since stepped back from spinning information in public.
The determination to halt the deliberate job cuts comes during a unstable yr for Wall Street. 2025 opened with initial optimism around deregulation and dealmaking under Trump.
Solomon was one of the CEOs current at President Trump’s ‘Invest in America’ occasion in Washington, DC, last month. AP
But a slowdown in M&A exercise was introduced about when the commander-in-chief threatened to declare a world commerce struggle, singling out many of the US’s trading companions that he believed had handled this nation unfairly.
Goldman last week also posted a more than 25% year-over-year increase in investment banking charges, suggesting that executives are assured about a pipeline of offers that will be struck once the White House has inked recent trading preparations with dozens of nations.
According to information from the London Stock Exchange Group, industrywide investment banking charges have climbed about 2% this yr to roughly $67 billion.
Trading has also been a vivid spot for Goldman, along with rivals Morgan Stanley and Citi, with the firm benefiting from heightened market volatility in 2025 that has fueled demand for equity and fixed-income trading providers.
The financial giant’s trading desks notched $4.3 billion in income for the second quarter — about $600 million above analysts’ forecasts — with some insiders citing savvy bets surrounding the so-called “TACO trade” — or wagers that “Trump Always Chickens Out” on his tariff threats.