Goldman Sachs Grows Staff 2% in 2025 as Peers Slash Jobs

Goldman Sachs increased its headcount by about 2% in 2025, ending the year with roughly 47,400 employees, a rare expansion among the largest U.S. banks as the industry shed roles overall. Across the six biggest U.S. banks, total headcount fell by roughly 10,600 in 2025, the largest combined decline since 2016, with Wells Fargo the single largest contributor to the reductions.

Goldman’s rise in employee numbers came as total compensation expense climbed, which company figures identified as a primary reason for higher overall costs. That increase in pay-related spending contrasts with the cost-cutting posture at several peers that hired aggressively during the pandemic-era deal boom and then trimmed roles as deal volumes normalized. Firms are also reevaluating staffing models as artificial intelligence and other efficiency tools mature, creating divergent approaches to workforce planning.

For Goldman employees, a net staff increase presents mixed signals. Higher compensation expense likely reflects raises, retention pay or targeted hiring in areas management deems strategic, which can create pockets of opportunity for front-line dealmakers, technologists and specialists. At the same time, broader industry layoffs reduce external hiring competition in some markets, but also raise pressure on productivity and cost control if revenue does not keep pace with payroll growth.

Workplace dynamics inside the firm may shift as managers balance the need to retain talent with scrutiny of cost lines. Teams that received reinforcements could see accelerated project timelines and heavier workloads tied to new initiatives, while other groups may face tighter approval for headcount growth. The disparity between Goldman's expansion and peers’ cuts could also influence employee mobility, with recruiters and workers weighing the relative stability of Goldman against potential restructuring elsewhere in the sector.

The pause in deal-driven hiring at other banks underscores a larger industry transition. Banks that expanded during the pandemic are recalibrating staffing to fit lower transaction volumes, and many institutions are experimenting with technology to boost productivity. For Goldman, continued investment in people amid rising compensation costs signals a bet on maintaining or growing revenue-generating capabilities rather than immediate broad-based retrenchment.

For employees and job seekers, the immediate takeaway is to track business-line performance and compensation trends closely. Expect uneven hiring and retention incentives across roles, and watch how investments in technology and efficiency reshape job descriptions and staffing needs in the year ahead.