The asset manager’s workforce is facing tough cuts.
(Photo: Reuters)
new York The slumps in the stock and bond markets in the past year are causing problems for Blackrock. The asset manager plans to lay off about 500 employees, representing 2.5 percent of the global workforce.
“The uncertainty all around us makes it more important than ever that we stay ahead of changes in the marketplace and focus on delivering for our customers,” CEO Larry Fink and President Rob Kapito wrote in an employee memo on Wednesday , which is available to the Bloomberg news agency.
It is the first major job cuts at Blackrock since 2019. Even after that, the New York company will still employ more people than a year ago. The money manager, which is due to report fourth-quarter results on Friday, had about 19,900 employees at the end of September.
Goldman Sachs is also announcing layoffs
The workforce at Goldman Sachs is even harder hit. The investment bank is planning the largest job cuts in its history and plans to lay off about 3,200 employees this week, including those in its core trading and banking divisions.
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High inflation and the resulting rise in interest rates have not only affected Wall Street. The important US index S&P 500 alone lost 19 percent in value last year. Blackrock shares initially reacted to the news of the job cuts with slight price losses on Wednesday. The paper has been down around six percent since the beginning of the year and lost 23 percent in 2022.
With nearly $8 trillion in assets under management at the end of the third quarter, Blackrock is considered the largest wealth manager in the world. The company has not yet provided any information on which areas will be most affected by the job cuts.
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