Wall Street investment bank Goldman Sachs (GS) has decided not to proceed with a second round of job cuts this year, according to a report from the Financial Times. Earlier this year, the bank had trimmed a small number of workers as part of its usual staff review. A follow-up round of layoffs was being considered for September, but those plans have now been put on hold.
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The move comes as Goldman sees signs of improvement across its core divisions, particularly investment banking and trading. People familiar with the matter said stronger fee income and a growing pipeline of deals have eased the pressure to cut more roles, at least for now.
Q2 Earnings Results Show Signs of Recovery
The bank recently reported its Q2 results, with both revenue and profit topping Wall Street forecasts. Investment banking fees jumped more than 25% from the same period last year, marking the largest increase among major U.S. banks and outpacing rivals like JPMorgan (JPM), Bank of America (BAC), and Morgan Stanley (MS). Notably, industry-wide, investment banking fees are up about 2% this year compared to last year, according to data from the London Stock Exchange Group.
Meanwhile, the trading division also delivered strong results, boosted by this year’s intense market swings. Volatility in equity and bond markets has helped the bank post gains from client activity.
Earlier this year, Goldman had kept the door open for further cuts, especially after new U.S. tariffs in April clouded the outlook for dealmaking. But with corporate interest picking up pace and key units showing growth, that threat has eased. Still, the bank could resume plans to trim jobs if economic conditions worsen.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on eight Buys, six Holds, and one Sell recommendations assigned in the last three months. The average GS price target of $715.33 implies 0.31% downside from current levels.
