BlackRock’s 400 job cuts would be the biggest round of layoffs for the company to date, according to a source close to the matter.
The world’s largest asset manager will announce the jobs it plans to axe in the coming weeks, but Funds Europe understands the jobs – amounting to 3% of the workforce – will be evenly spread across regions and business lines.
BlackRock aims to streamline its business and reallocate resources to areas with the most growth opportunities, the source added.
Although the firm declined to comment, in a memo to employees BlackRock said the cuts have not yet been finalised and that those affected will be treated fairly and with respect.
“Being a global leader requires that we continually re-assess our organization to look for ways to serve clients better, operate more efficiently, focus resources on strategic priorities and create new opportunities for our strongest employees,” the firm said in the memo from president Rob Kapito and chief operating officer Rob Goldstein.
BlackRock made major organisational changes in January.
Despite the cuts, the firm will continue to invest and hire in key areas. The firm has added 2,500 employees since 2013.
BlackRock is not alone among US asset management giants in cutting jobs. State Street announced last October it would be cutting 600 employees globally to accelerate cost reductions.
Blackrock has $4.6 trillion (€3.8 trillion) in assets under management and added a further $54 billion in net new money in the fourth quarter of the last financial year.
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