BlackRock, the world’s largest asset manager, has revealed plans to cut approximately 3% of its current workforce, translating to around 600 jobs.
The decision comes as part of the company’s strategic realignment, with no specific team targeted for the cuts. The cuts were attributed to the need to adapt to a rapidly changing environment, according to an internal memo from chief executive Larry Fink and president Rob Kapito.
“We see our industry changing faster than at any time since the founding of BlackRock,” they wrote. “As we prepare for 2024 and this very exciting but distinctly different landscape, businesses across the firm have developed plans to reallocate resources.”
They added that despite the job cuts, they expect the company’s headcount, currently at around 20,000, to continue to grow towards the end of 2024.
“By the end of 2024, we expect to have a larger workforce as we continue adding people and building capabilities to support key areas of growth,” Fink and Kapito wrote. “We need to be agile and efficient in how we serve our clients and how we manage our resources. We must leverage technology, and we must redeploy people and resources where the client needs are greatest and the opportunities for growth the most promising.”
The firm, which manages $9.1 trillion in assets, will reallocate resources to faster-growing areas including technology, exchange-traded funds, and private markets.
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Despite a 5% increase in shares over the past year, BlackRock’s growth lags behind the S&P 500, which recorded a 22% gain during the same period.
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