Goldman Sachs cut fewer jobs than planned but who cares?
When Goldman Sachs' intended Q2 job cuts were first reported in March, the firm was said to be cutting 3-5% of its staff globally, particularly at the vice president (VP) level. The implication was that between 1,400 and 2,300 of Goldman's staff would go.
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Today's results reveal that this didn't actually happen. Between March and June, Goldman's headcount fell by only 700 people, net. Either the firm decided not to cut so heavily after all, or it hired plenty of people during the quarter.
Either way, it doesn't much matter. Goldman Sachs' Q2 results, released today, are pretty fine. Net profits across the firm were up 22% year-on-year in the second quarter. Equities sales and trading revenues were up 36% a year; fixed income sales and trading revenues were up 9%. M&A revenues rose 16%; only equity and debt capital markets revenues disappointed, with increases of 1% and 2% respectively.
As the chart below shows, Goldman's M&A bankers and equities sales and trading professionals outperformed rivals in terms of revenue growth. Return on equity across the firm rose to 12.8%, from 10.9% last year.
Even though headcount appears to have fallen less than hoped, Goldman's strong performance leaves it in a position to pay well for 2025. Average compensation spending per head in the first half was $208k, up from $199k last year.
Even after cutting 700 people in the second quarter, Goldman still employed 1,600 more people in June '25 than June '24. Total headcount was 45,900 people at the end of the quarter.
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