Wall Street Begins New Wave of Layoffs in 2025
Wall Street is once again undergoing significant workforce cuts. Leading banks are downsizing as economic concerns weigh on expectations for 2025.
Morgan Stanley, Goldman Sachs, and Bank of America have all initiated layoffs in recent weeks. These Wall Street giants are cutting thousands of jobs across multiple departments.
Economic Uncertainty Fuels Wall Street Cuts
The timing of these layoffs coincides with economic uncertainty. Hopes for a post-election IPO surge under President Donald Trump are now fading. Wall Street’s optimism is being tested by ongoing trade tensions and cautious dealmaking.
Layoffs often happen during annual performance reviews, but this year’s cuts suggest deeper concerns across Wall Street.
Morgan Stanley Targets 2,000 Job Cuts
Morgan Stanley is preparing to eliminate about 2,000 positions in the first quarter of 2025. These layoffs will affect employees across both front and back office functions, excluding its 15,000 financial advisors.
According to internal sources, the cuts are part of a broader effort to optimize resources and improve operational efficiency.
Goldman Sachs to Reduce Workforce by 5%
Goldman Sachs is planning to reduce its workforce by 3-5%, equivalent to over 2,000 jobs. These layoffs will primarily target vice presidents, reflecting the firm’s overexpansion in recent years.
A Goldman Sachs spokesperson said the layoffs are part of their annual performance review and talent management process — a normal part of Wall Street operations.
Bank of America Cuts Junior and Senior Bankers
Bank of America has also joined the Wall Street downsizing trend. The bank recently cut 150 junior investment bankers, following a broader 1% staff reduction across its global banking and markets units.
Sources said that managing directors, directors, and vice presidents were all impacted. The cuts were described as part of BofA’s routine year-end review.
JPMorgan Slows Hiring, Quietly Trims Staff
JPMorgan Chase has not made public announcements about mass layoffs, but reports suggest the bank is quietly trimming its workforce. It laid off fewer than 1,000 employees in February.
The bank, which hired over 50,000 workers in the last four years, is now prioritizing efficiency. CFO Jeremy Barnum acknowledged that rapid growth may have led to operational inefficiencies.
Wall Street Adjusts to Trump-Era Challenges
Wall Street is recalibrating as the Trump administration introduces new trade policies and economic reforms. Hopes for an IPO boom and aggressive dealmaking under the new administration are fading.
Instead, caution is dominating decision-making as banks reduce headcount and reassess priorities.