Goldman Sachs Loses Senior Bankers Amid Leadership Changes and Deal Slowdown

Goldman Sachs (GS.N) has lost more than a dozen senior investment bankers this year — a figure higher than usual — following internal leadership reshuffles and a sluggish start to deal-making. According to three people familiar with the matter, the opening of new investment banking positions for 2025 also encouraged some to explore other opportunities.

Some bankers left after anticipating they would miss out on promotions this year, including the firm’s prestigious partner class, while others departed amid expectations of modest bonuses following a slow first half for deal activity, two sources said. They spoke on condition of anonymity as personnel discussions are confidential.

This is the first time the full scale of the departures has been reported by Reuters.

Despite the exits, Goldman Sachs remains at the top of Wall Street’s M&A league tables, with fee volumes approaching 2021 levels. Dealogic data shows that the firm’s total investment banking net revenue for the first nine months of the year reached its highest level since 2021.

Those who have left have joined rivals such as JPMorgan Chase (JPM.N), Wells Fargo (WFC.N), and Citigroup (C.N), while others have moved to boutiques like Evercore (EVR.N).

“We continue to run our firm with a focus on serving our clients and shareholders,” a Goldman Sachs spokesperson said. “Our success is driven by our exceptional teams and the strength of our franchise.”

The bank plans to announce its next class of partners in 2026.

In 2024, Goldman promoted 95 new partners — including 26 women — who officially assumed their roles earlier this year.

Among its major recent mandates, the bank advised Electronic Arts (EA.O) on its $55 billion sale to a consortium of private equity firms and Saudi Arabia’s Public Investment Fund, and Holcim (HOLN.S) on the planned $26 billion spinoff of its North American arm, Amrize.

“Overall deal volumes are down, but the transactions are larger and require fewer bankers,” said Stephen Biggar, banking analyst at Argus Research.

Dealogic data shows that global M&A activity in the third quarter reached $1.26 trillion — up 40% year-on-year — driven by mega deals. However, the total number of transactions fell 16% to 8,912, marking the weakest third quarter for deal count in two decades.

The rebound in investment banking has helped lift Goldman Sachs shares nearly 38% this year, outperforming the S&P 500 Financials Index (.SPSY), which rose 11%.

Leadership Overhaul

Goldman Sachs has undergone significant leadership changes this year, appointing co-heads across key divisions and adding six new members to its management committee. The firm also created a new financing division to streamline operations.

The Wall Street giant delayed its annual staff cuts — typically trimming 3% to 5% of headcount based on performance — from September to the second quarter. According to company filings, total headcount fell 2% quarter-on-quarter to 45,900.

“The expectation for a more active M&A environment has been building for some time,” said Macrae Sykes, portfolio manager at Gabelli Funds. “I believe Goldman Sachs is well-positioned to capitalize on the improving landscape thanks to its franchise strength and deep banking expertise. Headcount may fluctuate, but the productivity of its banking culture will not.”