BlackRock plans to lay off 500 workers after market downturn last year

BlackRock (BLK), the world’s largest asset manager, will lay off about 500 employees, or about 3% of its workforce, according to an internal email seen by Yahoo Finance.

The investment giant joins a growing number of Wall Street firms cutting staff after last year’s market rout and as Corporate America ramps up hiring freezes and layoffs.

“This week, after significant headcount growth over the past few years, we are making some changes to the size and shape of our workforce,” CEO Larry Fink and BlackRock Chairman Rob Kapito said in a note sent to the staff on Wednesday. “As a result of these actions, approximately 500 (or less than 3%) of our colleagues will leave BlackRock as we reallocate resources to our most critical growth opportunities. »

BlackRock Chairman and CEO Larry Fink speaks during the Clinton Global Initiative (CGI) meeting in Manhattan, New York, U.S., September 19, 2022. REUTERS/David 'Dee' Delgado

BlackRock Chairman and CEO Larry Fink speaks during the Clinton Global Initiative (CGI) meeting in Manhattan, New York, U.S., September 19, 2022. REUTERS/David ‘Dee’ Delgado

BlackRock has grown its workforce by about 8% in 2022 and 22% over the past three years, Fink and Kapito said in their post. After the departures, the asset manager’s headcount will remain 5% higher than a year ago.

The company did not immediately indicate in which departments the job cuts would take place. BlackRock employed 19,900 people globally in 30 countries as of September 30, according to its latest quarterly report.

BlackRock has about $8 trillion in assets under management, up from a high of $10 trillion at the start of 2022.

“Equity and fixed income markets are down significantly in 2022, and we and our clients continue to face market volatility and uncertainty,” the email reads.

Last year, global stocks and bonds closed their worst year since the 2008 financial crisis as the central bank scrambled to rein in historic inflation with its most aggressive interest rate hike in decades. decades and that the war in Ukraine shook the financial markets.

The benchmark S&P 500 index fell 19.4% in 2022, while the 10-year Treasury yield fell from around 1.5% at the start of 2022 to 3.88% last. trading day of the year.

“The uncertainty surrounding us makes it more important than ever that we stay ahead of market changes and focus on delivering for our customers,” Fink and Kapito’s post said.

BlackRock’s announcement comes as investment bank Goldman Sachs prepares to cut thousands of jobs this week. Goldman is expected to cut up to 3,200 jobs across the bank, according to a source familiar with the matter.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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