The dearth of dealmaking at major banks is leading to layoffs, with Goldman Sachs planning to cut hundreds of jobs this month.

JPMorgan has told analysts that deal fees for the nation’s largest bank will shrink by 50% in the third quarter from a year ago, according to president and COO Daniel Pinto, speaking at a conference. He said that JPMorgan may be forced to cut costs by cutting jobs and reducing employee bonuses. 

Citigroup has also warned that trading revenue will drop as securitized product trading has dragged on revenues.

JPMorgan has said trading has been a bright spot. JPMorgan said that markets trading revenue was headed for a 5% increase from a year ago. Strong activity in fixed-income trading helped offset lower equities trading revenue.

JPMorgan (JPM) shares are down about 28% this year, while shares of Goldman Sachs (GS) are down about 17%. Citigroup (C) shares are down 22% so far this year.

Banks would normally benefit from rising interest rates because they raise their net interest margins, but the lack of investment banking activity and trading is crimping their profit margins and forcing banks to cut costs. This dynamic should last for the rest of the year, at least,” said Caleb Silver, Editor-in-Chief of Investopedia.