Based on BlackRock’s workforce of 19,800 at the end of December 2022—the last time its employee numbers were updated—the job cuts would equate to about 600 positions.
The largest asset manager in the world, BlackRock, announced on Tuesday that it will reduce roughly 3% of its current workforce, though by the end of 2024 it hopes to have a larger workforce.
Based on BlackRock’s workforce of 19,800 at the end of December 2022—the last time its employee numbers were updated—the job cuts would equate to about 600 positions. A source at the company claims that no one team will be the target of the cuts.
Over the past year, the asset manager’s shares have increased by roughly 5%, but this is a far cry from the benchmark S&P 500’s roughly 22% gain.
In October, the company’s CEO, Larry Fink, hinted that it is searching for acquisition targets to accelerate its growth. Its assets under management at the end of the third quarter of 2023 were $9.1 trillion, as opposed to the $9.4 trillion at the end of the second quarter.
“Clients are receiving a genuine cash return for the first time in almost 20 years, and they can postpone re-risking until there is greater policy and market certainty. Fink stated in a statement at the time that “this dynamic weighed on the industry and BlackRock’s third-quarter flows.”
On Friday, BlackRock is anticipated to release its fourth-quarter financial results. Tuesday afternoon trade saw a 0.5% decrease in the company’s shares.