As economic uncertainties increase, Wall Street banks are beginning to lay off potentially thousands of employees. Morgan Stanley, Goldman Sachs, and Bank of America have all initiated workforce reductions across various parts of their operations. These layoffs are common during this time of year when underperforming employees are let go as part of the annual review process.

The job cuts are happening amidst uncertainties surrounding the Trump administration's trade policies, putting into question the expectations for a surge in initial public offerings and dealmaking. Morgan Stanley is reportedly looking to reduce around 2,000 positions by the end of the first quarter, mainly impacting front and back-office employees. These cuts are meant to align with the bank's business priorities, global employee performance, and location strategy.

Goldman Sachs is planning to trim 3-5% of its workforce, about 46,500 employees at the end of 2024, as part of its routine talent management process. Bank of America has already cut 150 junior investment bankers and a further 1% of staff across the global banking and markets divisions. JPMorgan Chase has not announced layoffs but has conveyed a decrease in hiring after hiring approximately 50,000 new employees in the past four years.