Goldman Sachs has launched a comprehensive initiative codenamed “Project Voyage” aimed at reducing costs and restructuring its workforce. The plan, which began in Q4 2024 and will unfold over several years, involves identifying executives whose positions could be eliminated or relocated to achieve cost savings.
Key Components of Project Voyage
- Firmwide Implementation: The initiative will affect multiple divisions including global banking and markets, asset and wealth management, engineering, operations, communications, marketing, and back-office functions.
- VP-Level Focus: The bank’s vice president ranks have been identified as particularly bloated and costly, with some VPs reporting to other VPs rather than managing directors. Client-facing VPs can earn up to $1 million in total compensation.
- Strategic Relocations: The plan includes moving employees from expensive locations like New York City to more cost-effective offices in Dallas, Texas and Salt Lake City, Utah.
- Replacement Strategy: Positions lost through the annual Strategic Resource Assessment (SRA) will be backfilled in lower-cost locations rather than in New York.
Goldman’s Expansion in Dallas
Goldman’s Dallas office is projected to grow from approximately 4,600 to 5,000 employees by 2028, coinciding with the opening of a $500 million campus. The city has authorized $18 million in tax incentives if Goldman meets this target by the end of 2028.
Implementation Process
Divisional heads are working with their chief operating teams to compile lists of potential cuts and relocations. CEO David Solomon has characterized this as “a three-year program” to better manage the bank’s expenses.
A Goldman spokeswoman stated: “We’re focused on operating the firm effectively and prudently over the long term, managing our business to meet the needs of our clients and re-investing for growth.”