Wall Street cuts 10,600 jobs as Goldman Sachs hires

The six largest U.S. banks reduced combined headcount by roughly 10,600 in 2025, trimming the sector's total payroll to about 1.09 million employees — the lowest aggregate level since 2021 — even as the largest lenders posted their strongest net profits since the pandemic. For Goldman Sachs, the industry contraction contrasted with a modest expansion: the firm's workforce grew around 2% year-on-year.

Bank-by-bank moves were uneven. One major firm led reductions, shedding roughly 12,000 roles, while Citigroup cut about 3,000 positions and announced plans for an additional 1,000 reductions. Bank of America largely pulled back on new hiring, and Morgan Stanley went through a cycle of cuts followed by selective expansion. By contrast, Goldman Sachs and JPMorgan Chase finished the year with more staff than they began it.

Executives have framed the staffing shifts as part of broader cost-cutting and restructuring efforts, combined with accelerated adoption of automation and artificial intelligence to drive efficiency across operations. At the same time, trading and market activity helped lift earnings, allowing several large banks to report net profits at levels not seen since the pandemic era.

For Goldman Sachs employees the picture is mixed. A small overall headcount increase signals continued investment in priority businesses and talent pipelines, but the broader industry retrenchment tightens the labor market and raises the bar for retention. Front-office teams focused on markets and trading may benefit from the revenue tailwind, while operations, technology, and support functions will likely see continued pressure to improve productivity and justify headcount through automation or redeployment.

Recruiting dynamics will shift accordingly. With some competitors shrinking while others hire, Goldman could find it easier to attract experienced talent in targeted areas but harder to retain staff facing increased workload or changing role expectations. Internal mobility and reskilling programs will be critical for workers seeking to move into growth areas such as AI, data science, and electronic trading.

The staffing landscape also affects workplace culture and performance management. Firms balancing higher profits with smaller or reorganized teams tend to tighten performance metrics and accelerate career gating, which can intensify competition within ranks and influence bonus pools.

For employees across these banks, the immediate takeaway is to monitor strategic hiring patterns, assess opportunities for upskilling, and pay attention to annual planning cycles that may realign priorities. Going forward, staffing moves are likely to remain surgical — expanding in strategic tech and markets roles while pruning where automation and efficiency gains can replace labor.