Wall Street Faces Job Cuts Amid Uncertain Economic Outlook

U.S. investment banks may cut jobs due to economic uncertainty and a slowdown in dealmaking. Tariff threats and market turmoil have affected capital markets. Major banks, like JPMorgan and Bank of America, are already reducing staff, while others may follow if the situation does not improve swiftly.

U.S. investment banks are bracing for potential job cuts if economic uncertainty continues to stifle dealmaking, say analysts and recruiters. President Trump's tariff threats and market turmoil have dampened Wall Street's optimism, forcing banks to reconsider staffing as revenues dip.

Big names such as JPMorgan and Bank of America have started annual employee evaluations, leading to layoffs, with Goldman Sachs and Morgan Stanley set to follow. Although analysts believe the investment banking slowdown is temporary, extended inactivity could necessitate further layoffs, experts warn.

Investment banking fees fell 6.3% in early 2023, signaling a troubling trend. As bonuses rise with rebounding activity, the outlook for 2025 remains shaky. Bank stocks are suffering, particularly smaller firms, as execs consider the potential need for cost-cutting measures if their revenue expectations aren't met.

(With inputs from agencies.)