Goldman Sachs may be a Wall Street stalwart, but the banking giant is aiming to curb expenses by shifting its real estate focus to cheaper markets.
With its "Project Voyage" initiative, the New York-based company is trying to shift more of its workforce to hubs in Salt Lake City or Dallas, a move expected to not only help drive down costs but also help thin some of its over-populated departments and take advantage of a new talent pipeline.
At nearly 2.2 million square feet, Goldman Sachs' Manhattan headquarters in the 43-story 200 West tower accounts for the largest slice of its global office footprint. However, headcount has flatlined there in recent years as its hubs elsewhere across the United States have mushroomed.
While the firm implements routine cuts to its global workforce, the company moving forward is focusing on backfilling positions in lower-cost markets, including its sprawling campus under construction in Dallas and its existing offices in Utah. The financial heavyweight employs more than 46,500 people around the world, according to information filed with the Securities and Exchange Commission.
"We're focused on operating the firm effectively and prudently over the long term," Goldman Sachs spokeswoman Abbey Collins said in a statement, a plan that entails "managing our business to meet the needs of our clients and re-investing for growth."
That echoes comments CEO David Solomon made earlier this year about how the bank was expanding its presence in strategic locations and “calibrating our pyramid structure," all part of a plan earlier reported by Bloomberg.
Reallocating growth
The Project Voyage initiative kicked off in late 2024 and is expected to roll out over the next three years as Golden Sachs tries to better manage its expenses.
Along with redistributing its employees, the company is also shifting around investments in its office portfolio, underscoring the value it has long placed on in-person work.
The bank was among the first to call its workers back to the office in the earlier years of the pandemic. It required all employees to report to an office five days a week starting in early 2022, a policy it began to more strictly enforce the following year after managers grew frustrated with workers who weren't adhering to it.
Goldman's commitment to office-based work has already translated into its more than $500 million investment in a new two-building campus in Dallas, where it is on track to increase its current regional headcount from about 4,600 employees up to more than 5,000 employees by the time construction wraps up in late 2027 and makes its debut the following year.
Even though the company cut about 100,000 square feet from its original plans, the development — spearheaded by Hillwood Urban and eventually owned by Hunt Realty — will still span about 800,000 square feet, becoming Goldman's second-largest corporate hub behind its New York headquarters.
“We have been operating in Dallas for more than 50 years [and] this state-of-the-art new campus further demonstrates our commitment to Dallas and is testament to the incredible talent and strong client base in the region,” Goldman Sachs President and Chief Operating Officer John Waldron said in an earlier statement that foreshadowed some of the bank's current plans.
To illustrate the cost differential between the Manhattan and Dallas office markets, rents in the Texas market currently average a little more than $32 per square foot, according to CoStar data. By comparison, rates around Goldman Sachs' tower in New York's financial district have climbed in recent years to more than $63 a square foot.
Beyond Dallas, Goldman Sachs leases nearly 375,000 square feet across multiple office properties in the Salt Lake City area, according to CoStar data, where office rents are even lower and currently average about $25.50 per square foot.
Along with its subsidiaries, the bank leases or owns more than 5.2 million square feet of office space around the world.