BlackRock set to cut 500 jobs after 2022's market slump
BlackRock $BlackRock(BLK)$ plans to trim its ranks by ~500 employees, or ~2.5% of its workforce, after the world's largest asset manager dealt with dramatic downturns in equity and bond markets last year, Bloomberg reported Wednesday, citing a staff memo from CEO Larry Fink and President Rob Kapito.
The memo didn't name the businesses that will be most affected by the job cuts. Fink and Kapito said they'd work to "manage expenses prudently" and invest in cost-effective ways.
The move represents the first round of headcount reductions since 2019. Its staff count will still be ~5% higher than it was a year ago, Bloomberg said. At the end of Q3, the firm's assets under management were $7.96T, down 16% from a year earlier.
BlackRock's (BLK) CEO and president also emphasized the company's ability to attract new client funds. Long-term net inflows were $248B in the first three quarters of 2022 and analysts surveyed by Bloomberg estimate BlackRock took in an additional $116B in Q4.
In 2022, BlackRock (BLK) stock dropped 23%, while the S&P 500 fell 19%.
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