Goldman Sachs puts brakes on layoffs after strong Q2: FT

Core Insights - Goldman Sachs has decided to halt a second round of planned job cuts due to stronger-than-expected results from its investment banking unit in the second quarter [1][4] - The bank reported a profit of $3.72 billion for the period ending June 30, translating to earnings of $10.91 per share, exceeding analysts' expectations [4] - Investment banking fees increased by over 25% year-over-year, indicating confidence in future deal-making once new trade agreements are established [9][10] Company Performance - Goldman Sachs currently employs approximately 46,000 people and had previously planned to reduce its workforce by 3% to 5% as part of a "strategic resource assessment" [3] - The trading desks generated $4.3 billion in revenue for the second quarter, surpassing analysts' forecasts by about $600 million [11] - The strong performance in trading and investment banking has led to the awarding of $80 million in bonuses to CEO David Solomon and COO John Waldron [5][6] Market Context - The decision to pause job cuts comes amid a volatile year for Wall Street, influenced by President Trump's tariff and trade policies [7] - Industry-wide investment banking fees have risen about 2% this year to approximately $67 billion, reflecting a broader recovery in the sector [10] - The economic turmoil caused by trade tensions has created opportunities for traders, with Goldman benefiting from increased demand for equity and fixed-income trading services [10][11]