American investment-management and financial-services company Morgan Stanley is cutting about 1,600 jobs or roughly 2% of its global workforce.
The news comes after chief executive James Gorman warned that the bank would see "modest" job losses.
He cast the downsizing as a predictable outcome after several years of rapid growth.
The BBC says Goldman Sachs is among other firms making cuts in the financial-services sector, which is also bracing for smaller staff bonuses.
Payouts on Wall Street are expected to fall more than 20% this year, after hitting a record in 2021, said New York city government officials in October. The average award in 2021 was more than £200,000.
Banks are among the sectors most vulnerable to economic slowdowns.
Economic outlook
At a banking industry conference yesterday, Goldman Sachs boss David Solomon warned about the economic outlook.
"Economic growth is slowing," he said. "When I talk to our clients, they sound extremely cautious."
The US economy has so far fared better than expected as consumers continue spending, buoyed by a strong jobs market and savings leftover from the pandemic.
But rapidly-rising prices are eroding business and households savings, which could eventually "derail" the economy, Jamie Dimon, head of JP Morgan Chase, said yesterday.
Credit Suisse in recent weeks said it planned to shed 9,000 posts over three years, part of a wider restructuring, while Barclays and Citigroup are among the other banks reported to be making reductions.
Morgan Stanley, which has made a number of acquisitions in recent years, employed roughly 82,000 people globally at the end of September, up from 75,000 a year earlier.
FTSE 100
The UK's top share index, the FTSE 100, was down 13 points at 7,507 shortly after opening this morning, following yesterday's 46-point loss.
Brent crude futures were almost static earlier at $79.55 a barrel.
The oil price is now at its lowest price since early January and is well off highs of more than $120 a barrel in March after Russia invaded Ukraine.
A string of bearish economic news internationally has unnerved investors despite the ongoing war in Ukraine and one of the worst energy crises in recent decades.
"Oil speculators are charging for the exits amid a flight from risk assets," said Matt Smith, lead oil analyst at Kpler.
Companies reporting today
- Full-year results: Mitchells & Butlers
- Half-year results: Moonpig Group