Wall Street Banks Plan Job Cuts Amid Economic Uncertainty

U.S. investment banks are facing potential job cuts as ongoing economic uncertainty, exacerbated by President Trump's tariff threats, dampens dealmaking activity. Major banks like JPMorgan and Bank of America have already started annual layoffs, with Goldman Sachs and Morgan Stanley planning further reductions if conditions do not improve. Analysts report a significant decline in global investment banking fees, which fell 6.3% to $16.83 billion in early 2025 compared to the previous year, and equity offerings have also decreased. There is a general expectation that the investment banking sector's recovery is delayed, rather than completely lost, but if conditions do not stabilize by summer, deeper cuts may be necessary. Recruiters suggest that larger banks are quicker to cut staff, while smaller boutique firms may follow later. The situation reflects broader concerns about the sustainability of employment in the sector amidst a challenging economic landscape.