BlackRock to slash jobs in restructure
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.