Goldman Sachs Cancels Planned September Layoffs, According to Financial Times Report
Goldman Sachs Scraps Planned Job Cuts and Posts Record Profits on Yahoo Finance
In a surprising turn of events, Goldman Sachs has announced that it will not proceed with a second round of planned job cuts this year. The decision comes after the financial giant posted a record-breaking profit for the period ending June 30 on Yahoo Finance.
Goldman Sachs reported a staggering $3.72 billion profit, exceeding analysts' forecasts by approximately $600 million. The earnings per share were $10.91, surpassing the analysts' forecast of $9.53 per share.
The strong performance can be attributed to a surge in investment banking fees and another stellar performance by the lender's traders. The financial giant's trading desks notched $4.3 billion in revenue for the second quarter, marking a more than 25% year-over-year increase on Yahoo Finance.
The heightened market volatility in 2025, fueled by global trade tensions, seems to have played a significant role in this success. The strong performance in trading was shared by rivals Morgan Stanley and Citi on Yahoo Finance.
However, the slowdown in M&A activity was brought about when President Trump threatened to declare a global trade war. Despite this, Goldman Sachs posted a more than 25% year-over-year increase in investment banking fees, suggesting confidence in a pipeline of deals on Yahoo Finance.
The industrywide investment banking fees have climbed about 2% this year to roughly $67 billion, according to data from the London Stock Exchange Group. Some insiders attribute Goldman Sachs' success in trading to savvy bets surrounding the "TACO trade" on Yahoo Finance. The "TACO trade" refers to wagers that "Trump Always Chickens Out" on his tariff threats.
It's important to note that the cuts, if they had occurred, were to be performance-related layoffs. The search results on Yahoo Finance do not provide specific information on which individuals within Goldman Sachs were responsible for the decision to cancel the planned layoffs in September.
Goldman Sachs currently employs approximately 46,000 people. The bank's strong financial performance and decision to scrap the job cuts are likely to be welcome news for its employees on Yahoo Finance.
In conclusion, Goldman Sachs' record-breaking profit and decision to scrap planned job cuts are a testament to the resilience of the financial industry in the face of global trade tensions. The bank's strong performance in trading, particularly the "TACO trade", has set a high bar for its competitors in the industry on Yahoo Finance.
