Goldman Sachs aborts job cuts for September, according to Financial Times report
In a surprising turn of events, Goldman Sachs has announced the cancellation of its planned job cuts for 2025, following a strong performance in the second quarter. The Wall Street giant reported mixed financial results, with a 15% year-on-year increase in net revenues and net earnings, but a 23% decrease from the previous quarter and a 27% increase compared to the same period last year [1][2][3].
The bank posted a $3.72 billion profit for the period ending June 30, with earnings per share of $10.91, down from $14.12 in Q1 2025 [1][2][3]. Despite the sequential decline in earnings, the company increased its quarterly dividend by 33% to $4.00 per share [1][2]. Goldman Sachs' Assets Under Supervision (AUS) also reached a record $3.29 trillion, indicating growth in managed assets [1].
The surge in investment banking fees and strong performance by Goldman's traders contributed to the decision to halt the planned job cuts. The bank notched $4.3 billion in revenue from its trading desks, about $600 million above analysts' forecasts [1][2]. Goldman Sachs' investment banking fees climbed more than 25% year-over-year, suggesting that executives are confident about a pipeline of deals [1][2].
The decision to award CEO David Solomon and his lieutenant, chief operating officer John Waldron, $80 million golden handcuffs bonuses earlier this year could be seen as a vindication for the strong results [1]. However, Solomon has faced criticism in recent years for his controversial side-hustle as a house DJ and his use of company aircraft, although he has since stepped back from spinning records in public [1].
The industrywide investment banking fees have climbed about 2% this year to roughly $67 billion [1]. The slowdown in M&A activity was brought about when President Trump threatened to declare a global trade war, leading to a drop in deal-making activity [1]. Despite this, Goldman Sachs benefited from heightened market volatility in 2025, fueling demand for equity and fixed-income trading services [1].
In a statement, a Goldman Sachs spokesperson declined to comment on the recent decision to cancel the job cuts [1]. However, it is believed that the surge in investment banking fees and strong trading performance played a significant role in the decision [1]. The bank currently employs approximately 46,000 people [1].
The decision to halt the planned job cuts comes during a volatile year for Wall Street, with ongoing trade tensions and economic uncertainties. The cancellation of the job cuts is a positive sign for the financial industry, indicating a potential recovery in the second half of the year [1].
[1] - Based on the given bullet points and available search results.
Goldman Sachs' increased net revenues and earnings, coupled with a significant surge in investment banking fees and strong trading performance, likely led to the decision to cancel the planned job cuts in 2025. The bank's business strategy, which includes managing assets worth over $3.29 trillion and offering equity and fixed-income trading services, seems to have been instrumental in these positive outcomes.
