BlackRock To Layoff 600 Employees
BlackRock, the world's largest asset manager, has disclosed plans to trim approximately 3 per cent of its existing workforce. This equates to around 600 positions within the company, which boasted a workforce of 19,800 at the close of December 2022.
This layoff will be targeting no specific team within the organisation, as revealed by a Reuters source. The decision to downsize comes amidst BlackRock's broader strategy to optimise its operations, with expectations of achieving a larger overall headcount by the conclusion of 2024. The move aligns with Chief Executive Larry Fink's October announcement, where he signaled the company's intent to explore acquisition opportunities as a means to propel its growth trajectory.
BlackRock, reporting a dip in assets under management (AUM) from USD 9.4 trillion in the second quarter to USD 9.1 trillion by the close of the third quarter in 2023, attributed this decline to clients experiencing real returns in cash for the first time in nearly two decades. Fink had previously said that this dynamic prompted clients to exercise caution, waiting for increased policy and market certainty before reassessing their risk profiles.
As the company prepares to unveil its fourth-quarter results on Friday, BlackRock's shares experienced a 0.5 per cent decline in afternoon trading on Tuesday.
(Inputs from Reuters)
