Black­Rock to slash jobs in re­struc­ture

The Weekend Australian - - THE WALL STREET JOURNAL - DAWN LIM JUSTIN BAER

Black­Rock is cut­ting about 500 jobs as the world’s largest money man­ager looks to sim­plify parts of its busi­ness and fo­cus more on tech­nol­ogy, re­tire­ment and al­ter­na­tive in­vest­ments.

The cuts make up roughly 3 per cent of Black­Rock’s more than 14,000 work­force.

The firm’s head­count will still be 4 per cent higher than a year ago fol­low­ing the de­par­tures.

Black­Rock is rein­vest­ing the money saved to bol­ster ar­eas chief ex­ec­u­tive Lau­rence Fink has slated as pri­or­i­ties such as tech­nol­ogy of­fer­ings, illiq­uid al­ter­na­tives, re­tire­ment prod­ucts and its fast-grow­ing ex­change­traded funds busi­ness.

The moves by the $US6.4 tril­lion firm re­flect pres­sures on as­set man­agers to seek new ways to ex­pand and in­su­late them­selves from a down­turn.

Like many as­set man­agers, Black­Rock has wres­tled in the past year with slow­ing in­vestor in­flows, height­ened price com­pe­ti­tion and slump­ing share prices.

“Mar­ket uncer­tainty is grow­ing, in­vestor pref­er­ences are evolv­ing, and the ecosys­tem in which we op­er­ate is be­com­ing in­creas­ingly com­plex,” ac­cord­ing to an in­ter­nal memo re­leased on Thurs­day.

“The changes we are mak­ing now will help us con­tinue to in­vest in our most im­por­tant strate­gic growth op­por­tu­ni­ties for the fu­ture.”

The last time the New York firm cut its work­force at this scale was back in 2016, when it also culled 3 per cent of its work­force.

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