Goldman Sachs is initiating rolling performance-based layoffs starting in April 2026, expected to affect 3-5% of its workforce, roughly 1,500 people. The framing as "performance-based" rather than structural is a common approach in finance that gives the bank flexibility to target specific roles while maintaining the appearance of meritocracy.
Goldman posted record revenue in 2025, which makes these cuts particularly notable. This is not a struggling bank trimming costs; it is a profitable institution optimizing its workforce structure in a year when Wall Street broadly has permission to cut. When peers like Morgan Stanley and HSBC are making similar moves, the competitive pressure to reduce headcount and improve margins becomes self-reinforcing.
The banking sector's 2026 cuts collectively represent a structural shift. These institutions are not planning to rehire when conditions improve. They are redesigning operations to function with fewer people permanently.