BlackRock is planning to cut 500 employees after a turbulent market year driven by surging inflation and rising interest rates.
The layoffs will impact less than 3% of the asset manager’s global workforce and will be the first round of job cuts to be initiated by the firm since 2019, a BlackRock spokesperson confirmed to ETF.com.
The firm ispoised to report its 4Q earningson Friday.
“The uncertainty around us makes it more important than ever that we stay ahead of changes in the market and focus on delivering for our clients,” BlackRock's founder, chairman and CEO Larry Fink and President Rob Kapito said in an internal staff memo that was circulated Wednesday, a copy of which was obtained byBloomberg.
In the same document, they pledged to “manage expenses prudently”.
BlackRock’s job cuts are the latest in a series of layoffs by tech and Wall Street firms amid tough market conditions, which has caused companies to reevaluate expenses and cut back on costs.
The announcement followssimilar movesby asset managers such as Goldman Sachs, which said it plans to cut 3,200 jobs to rein in costs earlier this week, according to Bloomberg.
Though the New York-based asset manager increased its headcount by almost 22% over the course of the past three years, the asset manager said it would pause discretionary hiring in October when it reported a decline in its third-quarter earnings and profits.
Economic turbulence aside, the firm – which has almost $8trn assets under management (AUM) – has faced mounting criticism from Republicans and Democrats alike over its sustainable investing strategy, particularly its stance on incorporating ESG criteria.
The firm’s shares dropped by 0.15% to $754.8 following news of its proposed job cuts Wednesday, according to data from Yahoo Finance.
This article was originally published on ETF.com