Goldman Sachs sees senior exits amid leadership reshuffle, dealmaking pause

Goldman Sachs has lost more than a dozen senior investment bankers this year, a higher number than normal, after internal shakeups and a sluggish start to 2025 drove them to seek new opportunities, according to three sources familiar with the situation. 

Some bankers left because they expected to be passed over for promotions this year, including to Goldman's elite partner class, while others exited because they expected meager bonuses after dealmaking stalled in the first half, according to two of the sources familiar with the situation who declined to be identified discussing personnel matters. 

The scale of departures is being reported by Reuters for the first time. 

 

Despite the departures, Goldman still tops Wall Street's league tables for mergers and acquisitions, and its fee volumes have also surged close to levels in 2021. Its broader investment banking net revenue in the nine months of the year rose to the highest since 2021, according to data from Dealogic. 

The bankers who departed this year joined rivals including JPMorgan Chase, Wells Fargo and Citigroup, while others joined boutiques like Evercore. 

"We always look to run our firm in service of our clients and shareholders," a bank spokesperson said in a statement. "Goldman Sachs succeeds because of our exceptional teams and strength of our franchise." The bank will elevate new partners this year. In 2024, it appointed 95 new partners, including 26 women. 

It advised Electronic Arts on its $55 billion sale to a consortium of private equity firms and Saudi Arabia's Public Investment Fund this year, and also advised Holcim on the spinoff of its North American business Amrize, now valued at $26 billion. 

"There have been fewer deals overall, but larger in size, requiring less headcount," said Stephen Biggar, a banking analyst at Argus Research. 

Megadeals across the industry jumped to $1.26 trillion in global mergers and acquisitions during the third quarter, up 40% year over year, according to Dealogic data. But 8,912 deals were signed, down 16% from last year, the worst third-quarter for deal volume in 20 years, according to the data. 

The surge in investment banking has also boosted Goldman's shares, which are up nearly 38% this year, outperforming the S&P Financial index's 11% rise. 

LEADERSHIP CHANGES 

Goldman made major leadership changes this year, introducing co-heads across its major divisions and adding six new members to its management committee. The firm also created a new financing division. 

The Wall Street giant also pulled forward annual staffing cuts to the second quarter this year from September. The exercise typically targets a headcount reduction of 3% to 5% based on performance. Headcount fell 2% to 45,900 employees in the second quarter versus the first, according to a company filing. 

"The expectation for the bigger M&A environment has been in place for some time," said Macrae Sykes, portfolio manager at Gabelli Funds. "As such, I believe that Goldman Sachs is well prepared to take advantage of the tailwinds given their franchise and broad-based banking capabilities. Headcount may fluctuate, but not, in my opinion, the productiveness of the firm's banking culture."