Wall Street job cuts loom as market turmoil stalls deals

Published: 2025-03-26 14:08:21 ET BAC

STORY: Job cuts on Wall Street could be on the horizon amid a recent slowdown in dealmaking, as economic uncertainty over President Trump's tariffs continues to keep investment bankers on edge and deals on ice.

That's according to analysts and recruiters, who warn that if dealmaking does not recover in the coming months, investment banks may look to reduce staffing levels.

Recent market turmoil following Trump's threats to impose tariffs on trading partners have weighed on capital markets activity and raised the risk of an economic slowdown.

It's a major shift from Wall Street's early expectations that mergers and acquisitions, as well as initial public offerings, would flourish under what appeared to be a business-friendly administration.

Wall Street banks including JPMorgan and Bank of America have already begun their annual practice of targeting underperforming employees, while Goldman Sachs and Morgan Stanley are planning to lay off staff in the coming weeks.

Global investment banking fees have fallen to just under $17 billion through mid-March, versus nearly $20 billion in the fourth quarter of 2024, according to preliminary data from Dealogic.

U.S. equity offerings have also slowed this year.

While shares of the country's biggest banks have held steady due to their diversified revenue streams, smaller investment bank stocks have slumped.

Evercore is down about 22% year-to-date and shares of Jefferies are down 21%.

Jefferies declined to comment, while Evercore did not respond to a Reuters request for comment.

Bank of America, Morgan Stanley and JPMorgan also declined to comment.

Goldman Sachs said it does not comment on specifics in any given year, but reiterated that recent job cuts were "part of its normal, annual talent management process."