People close to BlackRock told Fox Business that savings from the layoffs will be used to expand into growth businesses such as technology investing and alternative investment products.
BlackRock is reportedly preparing to announce plans in the coming days to lay off roughly 3% of the asset management giant’s global workforce.
According to a report by Fox Business, which cites a source familiar to the matter, the job cuts of around 600 employees are being described internally as routine, following a similar round of layoffs based on employee performance metrics last year.
The broadcaster said one potential reason behind the job cuts could be attributed to BlackRock experiencing a shift from a period of rapid asset under management growth to a more stable and mature phase in its business.
People close to BlackRock told Fox Business that savings from the layoffs will be used to expand into growth businesses such as technology investing and alternative investment products.
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A BlackRock spokesperson declined to comment.
The firm is due to publish fourth quarter earnings on Friday (12 January). In the third quarter of 2023, the firm reported a 13% year-on-year profits rise, but also recorded a drop in assets under management due to volatile markets.
Revenue over the quarter was $4.5bn and adjusted earnings were $10.91 a share. However, analyst consensus for fourth quarter earnings project a 2.46% decline year-over-year to $8.71 a share.
BlackRock shares are down 1.8% year-to-date, according to data from Morningstar Direct. In 2022, shares fell 20.4%.
