Goldman Sachs eyes April layoffs of underperformers as performance scrutiny rises

Goldman Sachs is planning a fresh round of selective layoffs in April, targeting underperforming employees as part of ongoing performance reviews, according to Reuters.

The cuts are expected to affect a small number of staff and are separate from the bank’s annual workforce reduction exercise, typically known internally as “strategic resource assessment”.

A source familiar with the matter told Reuters that Goldman Sachs usually trims 1% to 3% of its workforce during its annual cycle, but the upcoming layoffs fall outside that routine process.

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Not part of annual culling

The move signals a more continuous approach to performance management at the Wall Street firm.

“Regular, consistent headcount management is nothing out of the ordinary for a public company. We are constantly assessing our performance and talent across divisions,” a Goldman Sachs spokesperson said in a statement.

The bank did not disclose how many roles could be impacted in the April round.

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Report follows earlier signals

Business Insider had earlier reported that Goldman Sachs was preparing to reduce staff next month, citing multiple people familiar with the discussions.

The development comes at a time when global financial institutions are increasingly adopting rolling performance reviews instead of once-a-year workforce cuts.

The planned layoffs align with a wider pattern across Wall Street, where banks are tightening costs and recalibrating headcount.

According to Reuters, Morgan Stanley recently cut about 3% of its workforce, or roughly 2,500 jobs, across divisions as part of its own efficiency drive.

Banks are also facing pressure to improve productivity amid uncertain deal activity and evolving market conditions.

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Technology reshaping workforce decisions

The shift in workforce strategy is also unfolding alongside rapid adoption of artificial intelligence across financial services.

While Goldman Sachs has not explicitly linked the April layoffs to AI, industry analysts note that automation and AI-led efficiencies are increasingly influencing hiring and retention decisions.

The selective layoffs suggest that Goldman Sachs is moving towards more frequent, targeted performance-based cuts, rather than relying solely on periodic restructuring cycles.

As competition intensifies and technology reshapes operations, workforce management across global banks is likely to become more dynamic — and more closely tied to performance metrics.