Goldman Sachs Signals Layoffs in “OneGS 3.0” AI Pivot

NEW YORK — Goldman Sachs is freezing hiring and preparing for job cuts as it hands more work to artificial intelligence, according to an internal memo obtained by Reuters.

Key Facts

• The Plan: A new strategy called “OneGS 3.0” will use AI to handle tasks in sales, client onboarding, and lending operations.
• The Memo: Signed by CEO David Solomon, President John Waldron, and CFO Denis Coleman, the note warns of a hiring freeze and “limited” job reductions.
• The Goal: Executives stated the tech will “unlock significant productivity gains” that can be re-invested into the business.
• Source: Reuters, eFinancialCareers

The “OneGS 3.0” Strategy

Goldman Sachs is moving fast to fix its bottom line by replacing human effort with software. The bank’s leadership outlined a clear shift in a memo sent to staff this week. They are calling it “OneGS 3.0.” The plan is simple: stop hiring new people and cut existing roles where AI can do the job faster.

The memo specifically lists departments that are safe from the hiring freeze and those that are not. The bank plans to use AI tools to take over complex paperwork tasks. This includes regulatory reporting, checking out new vendors, and managing loan processes. While the bank calls the cuts “limited,” the freeze on new hires suggests a long-term plan to shrink the workforce through attrition.

Impact on Workers

This is not the first time Goldman has trimmed its ranks this year. In April, the bank cut roughly 1,900 jobs. Reports from that period indicated the bank paid an average severance package of nearly $80,000 per person to ease the transition. It is unclear if the packages for this round of “OneGS 3.0” cuts will match those figures.

The tone from the top is strict. CEO David Solomon and his team are looking to cut costs anywhere they can. By automating sales and onboarding, the bank hopes to lower its daily operating expenses. For employees in the back office, the message is worrying: the tools you use to do your job might be learning how to replace you.