A new report claims that BlackRock, the largest investment firm in the world, is preparing to announce 600 job cuts. The report suggests that the layoff announcement could be made in just a matter of days.
According to Fox Business, the expected job cuts of roughly 600 employees represent approximately 3% of the company’s current workforce. Fox Business reported that a source familiar with the matter described the layoffs as a routine operation of the money management company.
Fox Business noted that the company has not yet confirmed the job cuts. Additionally, the outlet noted that a BlackRock spokesperson refused to comment when approached about the matter; however, the investment firm is expected to provide a report on Friday regarding its fourth-quarter earnings for 2023.
BlackRock shares increased by 6% in 2023 after decreasing by 21% in 2022, according to Fox Business. The financial investment firm is also anticipating the Securities and Exchange Commission will approve the company’s proposed spot bitcoin exchange-traded funds Wednesday as BlackRock continues to expand its investment portfolio.
Sources close to the financial investment firm told Fox Business that the savings BlackRock would create as a result of the expected job cuts will be used for technology investment and alternative product investment.
BlackRock’s third-quarter report showed that the company was responsible for the management of roughly $9 trillion. Fox Business reported that the company has seen a major decline in assets under management after reaching over $10 trillion in 2022.
Fox Business reported that BlackRock’s decline in asset management over the past couple of years has occurred amid a political controversy caused by the company’s Environmental Social Governance (ESG) investing policies. ESG investing policies cause investment funds to be directed toward public companies that promote carbon footprint reduction and diversity initiatives.
Pointing to the company’s more recent attempts to distance itself from ESG initiatives, BlackRock founder and CEO Larry Fink told Fox Business that he no longer mentions the term ESG due to the heightened political controversy surrounding the policies.