Goldman sees staffing gains as bank job cuts hit nine-year high

Staff reductions across the six largest U.S. banks reached 10,600 in 2025, the highest annual total in nine years, even as some firms expanded parts of their payroll. Combined employment at JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley fell to about 1.09 million by the end of December, the lowest level since 2021.

The overall contraction reflected material cuts at several big banks, with Wells Fargo and Citigroup among those that trimmed headcount sharply. At the same time Goldman Sachs and Morgan Stanley recorded modest increases in employee numbers, a contrast that highlights competing strategies inside the industry as firms balance revenue goals with cost discipline.

The pattern points to a sector in flux. Efficiency drives and a wave of AI adoption have given banks new levers to reduce recurring costs, prompting reductions in roles judged redundant or automatable. Executives pursuing cost discipline have pared support functions and back-office roles even as they selectively invest in areas deemed strategic, including technology, data science and client-facing businesses. That selective approach helps explain why aggregate headcount fell while a couple of firms grew their workforces.

For employees, the diverging moves carry practical consequences. Workers in firms that cut headcount face heightened risk of layoffs, redeployments and increased performance pressure as teams shrink. At banks that added staff, the growth is likely concentrated and targeted rather than across-the-board hiring, meaning opportunities may be strongest for candidates with sought-after technical skills or revenue-generating experience. Across the industry, the adoption of AI and automation increases demand for reskilling; employees in operational roles should expect ongoing change in job content and required competencies.

Workplace dynamics are shifting as well. Recruiting priorities are narrowing, internal mobility programs are becoming a key retention tool, and managers must balance short-term cost targets with the need to preserve institutional knowledge. For junior staff and support teams, the terrain is particularly uncertain: hiring freezes in some units can coexist with headcount growth in others, complicating career-path planning.

What comes next for workers is likely more rebalancing rather than a return to broad-based hiring. Firms will continue to calibrate staffing to where they see strategic advantage, using automation and reorganization to squeeze costs while selectively investing in talent. Employees should monitor their business unit's priorities, seek opportunities to upskill in technology and data areas, and be prepared for continued reshuffling of roles and responsibilities in 2026.