GS' Rolling Layoffs in 2026: A Strategic Shift in Workforce Management

In a significant shift from its long-standing workforce reduction practices, The Goldman Sachs Group, Inc. GS is set to roll out a layoff strategy in 2026, one that replaces large, one-time job cuts with smaller, continuous rounds spread across the year, according to MSN article which cited Seeking Alpha.

For years, Goldman relied on its annual Strategic Resource Assessment (SRA), a performance review process that typically resulted in cutting up to 5% of its global workforce in a single round. However, in 2026, the bank is skipping its traditional spring SRA cycle. Instead, layoffs will begin in April and continue in phases through the summer. This evolution reflects a broader transformation in workforce management — from reactive downsizing to continuous performance calibration.

The upcoming layoffs are expected to impact multiple divisions, including the investment banking and asset management units. However, the scale of the cuts is anticipated to be significantly smaller than the major reduction undertaken in March of last year.

The company’s decision toward rolling layoffs is about flexibility and precision. By decentralizing workforce decisions, GS enables divisional leaders to make targeted adjustments in real time rather than waiting for a centralized annual review. The growing influence of artificial intelligence (AI) is another key driver. The company expects automation to significantly reshape employment patterns, with millions of roles to be affected in the coming years.

The shift away from the standard SRA by Goldman underscores a broader industry pivot toward agile workforce strategies, particularly amid economic uncertainty and evolving revenue dynamics. By stepping away from predictable, large-scale layoff cycles, GS appears to be aiming to minimize internal disruption and curb market uncertainty, while maintaining tighter, more continuous control over costs and performance.

Job Reduction Move by Other Financial Firms

Similar to GS, several large financial institutions, including Wells Fargo WFC and UBS Group AG UBS, are pursuing workforce reductions as part of broader efficiency initiatives.

Wells Fargo has signaled that its workforce could shrink further in 2026 as part of a broader push to improve efficiency and expand the use of AI across its operations. At the Goldman Sachs 2025 conference held in December, CEO Charlie Scharf indicated that the bank is preparing for additional staff reductions heading into next year. Wells Fargo plans to roll out AI gradually over the next year and continue expanding its use beyond 2026, with AI-enabled efficiencies expected to support operational improvements over time.

UBS Group is preparing to cut up to 10,000 jobs globally by 2027, according to a Business Today news article published on MSN, as the bank continues to integrate Credit Suisse. Since completing the acquisition in 2023, UBS Group has already eliminated around 15,000 roles, largely stemming from overlapping functions created by the merger. Going forward, workforce reductions could accelerate depending on the pace and progress of the Credit Suisse integration, as UBS works to remove redundancies and streamline its combined operations.

Goldman’s Price Performance, Valuation & Estimates

GS shares have gained 43.3% in the past year compared with the industry’s growth of 22.3%.

Price Performance

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From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 13.95X, above the industry’s average of 12.79X.

Price-to-Earnings F12M

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The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings implies year-over-year rallies of 10.5% and 10.6%, respectively. The estimates for both years have been revised upward over the past 30 days.

Estimate Revision Trend

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Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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