Goldman Sachs has informed employees of potential job cuts and a hiring slowdown through the end of the year, according to an internal memo seen by Reuters, as the Wall Street giant aims to use artificial intelligence to enhance productivity.
"The rapidly accelerating advancements in AI can unlock significant productivity gains for us, and we are confident we can re-invest those gains to continue delivering world-class solutions for our clients," said the memo, signed by CEO David Solomon, President John Waldron and CFO Denis Coleman.
A spokesman for the firm said the company still expects to finish with a net increase in overall headcount.
Calling the initiative "OneGS 3.0," the memo said some of the priorities for its AI initiative are sales and client on-boarding process, as well as other critical areas such as lending processes, regulatory reporting, and vendor management.
Goldman made major leadership changes this year, introducing co-heads across its major divisions and adding six new members to its management committee. The firm also created a new financing division.
The Wall Street giant also pulled forward annual staffing cuts to the second quarter this year from September. The exercise typically targets a headcount reduction of 3% to 5% based on performance.
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