Goldman Sachs Group loses several senior bankers, with promotion bottlenecks and shrinking bonuses as the main reasons
Goldman Sachs Group has lost more than ten senior investment bankers this year, mainly due to internal restructuring, promotion bottlenecks, and shrinking bonuses. Despite the talent loss, the firm remains at the top of the M&A business on Wall Street, with fee income close to 2021 levels. Some departing bankers have joined competitors such as JP Morgan and Wells Fargo. Goldman Sachs' stock price has risen nearly 38% this year, outperforming the S&P 500 Financial Index
According to three informed sources, Goldman Sachs Group (GS.US) has lost more than ten senior investment bankers this year, a number higher than usual. Internal restructuring and a slow business start in 2025 have prompted them to seek new opportunities.
Two anonymous sources discussing personnel changes stated that some bankers left due to the expectation of no promotions this year (including entry into Goldman Sachs' elite partner tier), while others anticipated reduced bonuses due to stagnant trading activity in the first half of the year.
Despite the talent drain, Goldman Sachs remains at the top of the Wall Street merger and acquisition rankings, with its fee income soaring to nearly 2021 levels.
According to Dealogic, the bank's net investment banking revenue in the first nine months of this year reached its highest point since 2021.
Some of the bankers who left this year joined competitors such as JP Morgan, Wells Fargo, and Citigroup, while others moved to boutique investment banks like Evercore. A Goldman Sachs spokesperson responded, "We always operate the company with a focus on the interests of our clients and shareholders; our exceptional teams and brand strength are the cornerstones of our success." The bank will announce its new partner list in 2026.
In 2024, Goldman Sachs appointed 95 new partners (including 26 women), effective earlier this year. This year, it led the $55 billion sale of Electronic Arts to a private equity consortium and the Saudi Public Investment Fund transaction, and guided the spin-off of Amrize, which is currently valued at $26 billion.
Argus Research banking analyst Stephen Biggar noted, "While the total volume of transactions has decreased, the size of individual deals has increased, reducing the need for staffing."
Dealogic data shows that the global M&A market saw a massive transaction volume increase of 40% year-on-year to $1.26 trillion in the third quarter, but the number of transactions fell 16% year-on-year to 8,912, marking the worst performance for the third quarter in 20 years. The recovery in investment banking business has driven Goldman Sachs' stock price up nearly 38% this year, outperforming the 11% increase in the S&P 500 Financial Index.
Leadership Changes
Goldman Sachs implemented significant leadership adjustments this year, establishing a co-head mechanism in major departments and adding six new members to the management committee, while also creating a new financing department.
The Wall Street giant also moved its annual layoff plan from September in previous years to the second quarter, with such adjustments typically based on performance leading to a 3%-5% reduction in positions. Company documents show that its total number of employees decreased by 2% in the second quarter compared to the first quarter, totaling 45,900.
Gabelli Funds portfolio manager McRae Sykes stated, "The market has had expectations for a recovery in the M&A environment for some time. Given Goldman Sachs' brand advantage and comprehensive banking capabilities, I believe it is well-prepared to ride the tailwinds. The number of personnel may fluctuate, but the productivity of the bank's culture will not be compromised."
