Goldman Sachs has begun a new phase of restructuring it calls “OneGS 3.0,” aimed at transforming the firm’s internal operations through artificial intelligence and process automation — a move that will include limited job cuts and a slowdown in hiring through the end of 2025.
In an internal memo signed by CEO David Solomon, President John Waldron, and CFO Denis Coleman, the bank said the initiative will “re-wire” its operations to boost efficiency, profitability, and client service, while unlocking productivity gains through AI.
The bank described the plan as a “multi-year effort” that will measure progress across six goals — improving profitability, enhancing client experience, driving efficiency, strengthening resilience, enriching employee experience, and improving risk management.
“We believe the time is right to transform the operating system for the firm — what we are calling OneGS 3.0,” the memo said. “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.”
Goldman said some of the first workstreams to be re-engineered through AI will include sales enablement, client onboarding, lending processes, regulatory reporting, and vendor management.
The plan follows Solomon’s recent remarks at a conference where he predicted the firm would have “more employees, not less” in the long term, arguing that automation would ultimately create new roles. However, the company is now tightening hiring in the short term, saying it will “constrain headcount growth through the end of the year” and undertake a “limited reduction in roles” across business lines.
The Wall Street bank has already leaned heavily into artificial intelligence this year, developing tools such as its internal GS AI Assistant, a ChatGPT-style product, and other copilots to help bankers work faster. Solomon said the new AI model will allow Goldman to combine automation with human expertise, creating what he called “a more agile internal ecosystem.”
Goldman’s headcount currently stands at about 48,000 employees, up 5% from a year ago. A company spokesperson told Business Insider that the bank still expects a net increase in overall staff by the end of 2025, despite the near-term slowdown.
The internal memo also highlighted the firm’s financial progress since launching its “One Goldman Sachs” framework in 2018. According to Solomon, the bank’s stock price has climbed about 250% since then, book value per share has risen 79%, and its quarterly dividend has increased 400%.
The “OneGS 3.0” initiative builds on that earlier framework, which sought to eliminate silos across divisions and integrate its global banking and asset management franchises. The updated version now aims to apply the same philosophy to Goldman’s internal systems, embedding AI into nearly every layer of operations.
“We don’t take these decisions lightly,” the executives wrote. “Even when the business is performing well, we have an obligation to review our operations carefully and position the firm for the future. The firm has always been successful by not just adapting to change, but anticipating and embracing it.”
Goldman reported stronger-than-expected third-quarter earnings last week, driven by a rebound in investment banking advisory fees and rising revenue from asset and wealth management. The memo suggests the firm intends to channel those gains into its AI transition, which it views as central to its long-term competitiveness.
Read the full memo below:
OneGS 3.0 — Transforming the Operating System for the Firm
Over the past seven years, we have meaningfully strengthened our client franchise and unlocked significant value for our shareholders. Since October 2018, our stock price has increased ~250 percent, our book value per share has grown by 79 percent, and we have raised our quarterly dividend by 400 percent.
Our ability to further grow the firm will be materially enhanced by operating more efficiently and effectively. To do this, we believe the time is right to transform the operating system for the firm — what we are calling OneGS 3.0.
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. While we are still in the early innings in terms of assessing where AI solutions can best be deployed, it’s become increasingly clear that our operational efficiency goals need to reflect the gains that will come from these transformational technologies.
To fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations. This doesn’t just mean re-tooling our platforms. It means taking a front-to-back view of how we organize our people, make decisions, and think about productivity and efficiency. In short, this is a moment for us to expand our “One Goldman Sachs” ethos to our internal operating model.
We have made tremendous progress through our One Goldman Sachs framework to, first, break down silos and improve our ability to serve our clients through our cross-divisional client initiative launched in 2018, and second, increase synergies across our businesses by bringing together our leading franchises in Global Banking & Markets and Asset & Wealth Management. OneGS 3.0 is a natural evolution of this framework that will rewire the firm and further scale the best client service organization in financial services.
This will be a multi-year effort that will build over time. We plan to measure our progress across six goals: (1) enhancing the client experience; (2) improving profitability; (3) driving productivity and efficiency; (4) strengthening resilience and capacity to scale; (5) enriching the employee experience; and (6) bolstering risk management.
To start, we are drilling in on a handful of front-to-back workstreams that can significantly benefit from AI-driven process reengineering and will help inform our longer-term approach. These include priorities such as sales enablement and client onboarding that directly impact the client experience, as well as other critical areas that have touchpoints across the firm, for example, our lending processes, regulatory reporting, and vendor management.
Our teams are already seeing a number of opportunities in these areas to deliver the firm even more seamlessly to our clients and drive greater capacity for future growth. To achieve this, we need to have the best people in the right seats, give them the tools to meet the needs of our clients, and implement the most effective and efficient processes. Even when the business is performing well, we have an obligation to review our operations carefully and position the firm for the future.
As part of this broader responsibility, we will constrain headcount growth through the end of the year, in addition to a limited reduction in roles across the firm. These targeted steps are consistent with our priorities of gaining more agility and creating the right team structures in order to implement effective AI solutions and invest in the most attractive long-term growth opportunities.
We don’t take these decisions lightly, but this process is part of the long-term dynamism our shareholders, clients, and people expect of Goldman Sachs. The firm has always been successful by not just adapting to change, but anticipating and embracing it.
We are deeply grateful to all of you for your dedication to the firm and your colleagues — and for always putting our clients first as the firm continues to evolve. We are confident that we can leverage our existing culture of collaboration and one-firm mentality, alongside the latest in technological solutions across AI and automation, to meaningfully transform Goldman Sachs.
