The reduction in workforce is estimated to be around 600 positions, calculated from BlackRock's December 2022 employee count of 19,800, which was the latest update on its staff numbers.
On Tuesday, BlackRock, the globe's largest asset manager, announced a reduction of approximately 3% in its current workforce. Despite this, the company anticipates a larger headcount by the close of 2024. The job cuts, totaling around 600 positions, are based on BlackRock's workforce of 19,800 as of December 2022, the latest update on employee numbers. Notably, no specific team will be targeted in these cuts, as per an insider at the firm.
Over the past 12 months, the asset manager's shares have risen by approximately 5%, lagging significantly behind the benchmark S&P 500, which saw a gain of about 22%.
In October, Chief Executive Larry Fink indicated the company's interest in acquiring targets to boost its growth trajectory. By the end of the third quarter in 2023, BlackRock's assets under management stood at $9.1 trillion, a decline from the second-quarter total of $9.4 trillion.
Fink commented in a statement during the third quarter, stating, "For the first time in nearly two decades, clients are earning a real return in cash and can wait for more policy and market certainty before re-risking. This dynamic weighed on the industry and BlackRock's third-quarter flows."
BlackRock is anticipated to reveal its fourth-quarter results this Friday. The company's shares experienced a 0.5% decline in Tuesday afternoon trading.
