(Reuters) - Major U.S. banks kept their staffing levels largely stable in the first quarter, bracing for potential disruption later in the year that some analysts say may trigger job cuts.

Turbulence stemming from President Donald Trump's tariffs has fueled fears that economic growth may slow down and spook corporations into adopting a cautious approach to deals.

Should mergers and acquisitions stall and initial public offerings remain sluggish, employees at Wall Street banks could have to bear the brunt, Reuters has reported.

That outcome is looking increasingly likely as Trump's vacillating trade policy sows confusion.

The KBW Bank Index has fallen nearly 11% since Trump unveiled the tariffs on April 2, which he has touted as Liberation Day.

"Clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions," JPMorgan Chase ( JPM ) CEO Jamie Dimon said on a post-earnings call on Friday.

The bank's employees grew 0.4% over the three months ended March 31. The bank currently has more than 14,000 open positions, a spokesperson for the bank said last week.

Bank of America ( BAC ) and Wells Fargo ( WFC ) reported 0.2% and nearly 1% fewer employees, respectively. BofA had cut a few investment banking roles in the first quarter, Reuters reported last month.

Goldman Sachs ( GS ) added 100 people, while its rival Morgan Stanley ( MS ) hired 545. Headcount at Citigroup ( C/PN ) was almost unchanged.

"I would expect a significant amount of M&A activity through the rest of the year," Goldman Sachs ( GS ) CEO David Solomon said on an analyst call after results on Monday.

"But obviously, if the (economic) landscape got more constrained, there's a risk of it slowing," he added.

All of the banks reported better-than-expected profits for the first quarter, primarily driven by higher trading revenues as consumers rejigged their portfolios in an uncertain market.

BANK HEADCOUNT HEADCOUNT

AS OF AS OF

MARCH 31, DECEMBER

2025 31, 2024

JPMorgan ( JPM ) 318,477 317,233

Chase

Bank of 212,732 213,193

America

Citigroup ( C/PN ) ~229,000 ~229,000

Wells 215,367 217,502

Fargo

Morgan 81,023 80,478

Stanley

Goldman 46,600 46,500

Sachs

Source: Company filings

(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Additional reporting by Nupur Anand in New York; Editing by Maju Samuel)