BlackRock cuts hundreds of jobs, trimming about 1% of staff

BlackRock is cutting hundreds of jobs across the company, becoming the latest Wall Street firm to rein in headcount in recent weeks.

The cuts total about 1 per cent of BlackRock’s global headcount, according to sources familiar with the matter, who asked not to be identified discussing private information. The reductions amount to about 250 employees firmwide and include members of its investment and sales teams, the sources said.

“Improving BlackRock is a constant priority,” a company spokesperson said. “Each year, we make decisions to ensure that our resources are aligned with our objectives and that we are well-positioned to serve clients today and in the future.”

The cuts come as chief executive officer Larry Fink works to re-wire the world’s largest asset manager and push deeper into alternative investments. Since closing its US$12 billion acquisition of private credit specialist HPS Investment Partners in July, BlackRock has been integrating its new executives and preparing to unveil a new range of funds for wealthy retail investors.

BlackRock instituted two rounds of job cuts last year, trimming about 1 per cent of its headcount on each occasion, Bloomberg reported at the time.

Other financial firms have been seeking to cut jobs and control costs. Citigroup is set to eliminate about 1,000 jobs this week. UBS Group is also planning to do a round of job cuts this month and that will be followed by another round later this year as it switches off computer systems acquired from Credit Suisse, Bloomberg previously reported.

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BlackRock reports fourth-quarter earnings on Jan 15. The company had about 24,600 employees and managed about US$13.5 trillion at the end of September. BLOOMBERG

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