BlackRock to layoff 500 of its staff

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Key takeaways:

  • BlackRock will be eliminating up to 500 positions, or less than 3% of its total staff.
  • Last October, it was instructed to start compiling a list of potential layoff candidates for people managers.

The most effective asset management in the world, BlackRock (BLK), will let go of about 500 workers, or about 3% of its workforce. $10 trillion asset management fired its first batch of employees since 2019 in this round. The decrease in employment still accounts for a small part of the company’s more than 18,000 global employees.

The company’s employees received word of the layoffs on Wednesday via a memo arranged by CEO Larry Fink. In addition, Business Insider reports informed the impacted workers. The layoffs took place at one of the biggest asset management companies in the world after a disastrous market slump in 2022. In a memo distributed to staff, CEO Larry Fink and BlackRock President Rob Kapito stated:

“This week, after meaningful headcount growth in recent years, we are making some changes to the size and shape of our workforce; as a result of these steps, about 500 (or less than 3%) of our colleagues will be leaving BlackRock as we reallocate resources to our most critical growth opportunities.”

The day before, human resources had approached managers regarding layoffs. The change comes after the corporation contacted managers in October and requested a list of workers who might be subject to layoffs.

The company did not immediately identify which departments might experience job losses. As of September 30, BlackRock employs 19,900 workers worldwide in 30 different countries, according to its most recent quarterly report. From a peak of $10 trillion at the beginning of 2022, BlackRock now manages about $8 trillion in assets. The impending economic crisis might have influenced the implemented reduction. In the memo, they said:

“Taking a targeted and disciplined approach to how we shape our teams, we will adapt our workforce to align even more closely with our strategic priorities and create opportunities for the immense talent inside the firm to develop and prosper,” 

The article also mentions that managing directors in New York held an hour-long meeting to consider layoffs. Which departments within the workforce were most impacted by the decisions is still unclear. In the memo, president Rob Kapito and CEO Larry Fink discussed how the company’s personnel had increased by 22% over the previous three years. Increasing specifically by 8% in 2022.

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