Goldman Sachs is embarking on a sweeping transformation that reflects one of the most ambitious technology-driven restructurings in its history. The firm has announced a significant artificial intelligence–based modernization of its OneGS initiative — the cross-divisional platform originally intended to integrate operations, improve cross‑bank collaboration, and unify its disparate client offerings under the cohesive identity of “One Goldman Sachs.” This renewed version, officially branded as OneGS 3.0, represents not just a technological upgrade but also a deep structural reengineering of how the firm organizes talent, manages processes, and deploys innovation to enhance the overall client experience.
According to an internal memorandum shared firmwide and later obtained by Business Insider, Goldman Sachs confirmed that implementing OneGS 3.0 will involve measured workforce adjustments. These changes include a modest “reduction in roles,” complemented by a temporary restriction on new headcount growth continuing through the end of the current year. Such measures, the leadership emphasized, are designed to enable smoother integration of automation and AI, recalibrate team structures, and create an organization capable of operating with greater efficiency, agility, and long-term profitability.
In the same memo, Chief Executive Officer David Solomon, along with President John Waldron and Chief Financial Officer Denis Coleman, described the forthcoming transformation as an opportunity to fundamentally “re‑wire” Goldman’s internal operations. Their vision extends beyond cost optimization — it seeks to reinvent how the company functions, makes decisions, and interacts with clients. They stressed that “to fully benefit from the promise of AI,” Goldman must achieve greater speed, flexibility, and responsiveness in every dimension of its work, from back-end analytics and process management to front-line client interaction. This marks, they suggested, a pivotal moment to apply the successful ‘One Goldman Sachs’ client philosophy inwardly, aligning internal operations with the same unified ethos that has already redefined its market approach.
During a shareholder call held on the same day, Solomon elaborated that the OneGS initiative would unfold as a multiyear journey rather than a short-term project. He hinted at early-stage transformations targeting specific operational domains — including sales enablement and client onboarding — where AI tools are expected to deliver immediate, tangible improvements. By embedding machine learning and automation into these areas, the firm anticipates streamlining currently labor-intensive activities, thereby freeing its experts to focus on higher-value strategic tasks that enhance client relationships and business growth.
Notably, the announcement follows comments Solomon made at a recent financial conference, where he expressed optimism regarding the firm’s overall employment trajectory despite short-term restructuring. He stated that AI-driven productivity and efficiency could ultimately lead to a net expansion in workforce size, as the technology enables both higher output and the creation of new types of roles. Goldman Sachs has already made considerable strides in the AI domain — deploying proprietary tools such as its GS AI Assistant, an internal generative‑AI interface comparable to ChatGPT, and various AI-powered copilot systems aimed at supporting bankers, analysts, and asset managers in their daily workflows.
A company spokesperson further clarified that, despite near-term limits on hiring, the firm expects to conclude 2025 with a net increase in total headcount. Recent financial disclosures already reflect this upward momentum: Goldman’s global workforce grew by approximately 5% during the third quarter, bringing total employment to around 48,000 individuals across its international branches. This measured growth reflects how AI implementation, far from simply replacing human labor, is being leveraged to extend capacity, foster innovation, and scale the firm’s capabilities.
In the accompanying memorandum titled “OneGS 3.0 — Transforming the Operating System for the Firm,” leadership detailed the strategic rationale behind this transformation. Over the past seven years, Goldman Sachs reports having significantly strengthened its client franchise, generating substantial value for shareholders. Since October 2018, the firm’s stock price has risen approximately 250%, book value per share has climbed by nearly 80%, and its quarterly dividend has quadrupled. Building upon this trajectory of success, the leadership team believes that modernizing the operational foundation of the company — the firm’s internal “operating system” — is essential to sustaining growth.
They assert that the exponential pace of AI advancement now offers unparalleled opportunities to amplify productivity and operational effectiveness. While acknowledging the developmental stage of these capabilities, management emphasized the need for organizational structures that can accommodate and fully reflect the transformational efficiencies AI will bring. Importantly, this transformation extends beyond upgrading technological infrastructure: it encompasses reevaluating organizational design, decision-making frameworks, and workflow integration to ensure every unit of the firm operates with the unity, speed, and coherence demanded by a digital-first environment.
The memo credits the original One Goldman Sachs strategy, launched in 2018, with successfully breaking down interdivisional barriers and improving client servicing through a holistic, cross-bank perspective. By aligning divisions such as Global Banking & Markets with Asset & Wealth Management, the firm has created deeper synergy across its businesses and become better positioned to provide seamless solutions. OneGS 3.0 builds directly on that foundation, envisioned as the “next stage” — a refinement of the model that will extend the same integrative logic to the firm’s internal processes, thereby positioning Goldman Sachs to scale its client service to an entirely new level.
The transformation will unfold over several years and will be benchmarked against six primary goals: improving the client experience, enhancing profitability, driving workplace efficiency, boosting institutional resilience, enriching employee satisfaction, and elevating the firm’s capabilities in risk management. The initial phase will target specific “front‑to‑back” workflows that stand to benefit most from AI-enabled reengineering — including sales enablement, client onboarding, lending procedures, regulatory reporting, and vendor management. By integrating automation into these domains, Goldman aims to reduce friction in client engagement, standardize compliance processes, and optimize the speed of operational responses.
Leaders emphasized that realizing the full potential of these opportunities requires precisely aligning skilled personnel with appropriate roles, ensuring access to the right technological tools, and continuously refining processes to maintain operational excellence. Even during periods of profitability and strong performance, they underline, it remains imperative to reassess structure and strategy to prepare for future demands. This proactive stance — temporarily reducing roles and slowing hiring — is intended as a disciplined approach to facilitate future-oriented investments in automation and human capital alike.
David Solomon, John Waldron, and Denis Coleman closed their message by acknowledging the weight of these decisions and the firm’s responsibility to its employees, clients, and shareholders. They reaffirmed that Goldman Sachs’s long record of success has derived not merely from its capacity to adapt but from its willingness to anticipate change and leverage it as a catalyst for reinvention. Expressing gratitude for the dedication of staff and their continued commitment to client excellence, the leaders conveyed confidence that the integration of artificial intelligence, coupled with the firm’s enduring culture of collaboration and unity, would propel Goldman Sachs into its next era of strategic and operational transformation.
Sourse: https://www.businessinsider.com/goldman-sachs-job-cuts-ai-operations-overhaul-onegs-2025-10
