BlackRock to cut 3% of workforce, aims for larger employee strength by end of 2024

Financial giant BlackRock has announced plans to lay off about 3 per cent of its current workforce, citing a need to streamline operations and adapt to changing market conditions, as reported by Reuters.

Despite the layoffs, BlackRock remains optimistic about its future growth prospects. The company expects to have a larger workforce by the end of 2024, driven by hiring in key areas such as technology and alternative investments.

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The workforce cut is expected to affect around 600 employees out of BlackRock's 19,800 manpower as recorded till December 2022, according to a report by Reuters.

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The layoffs are not focused on a specific team, but can affect anyone from different departments, reported Reuters.

The stocks of asset managers are up by 5 per cent in 12 months, which is very less when compared with 22 per cent gain in the benchmark S&P 500.

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Chief Executive Larry Fink in October hinted that the company is mulling over acquisition targets in order to increase its growth trajectory. It ended the third quarter of 2023 with $9.1 trillion in assets under management, down from the second-quarter total of $9.4 trillion.

"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," Fink said in a statement at the time, 

BlackRock is expected to announce its fourth-quarter results on January 12. Shares of the company were down 0.5 per cent in afternoon trading on January 9.