BlackRock, the world‘s largest asset manager, is reportedly planning to lay off 3% of its global workforce, approximately 600 employees, according to sources familiar with the matter. The decision comes as part of a “routine” round of layoffs, similar to a move the company made at the beginning of last year in response to market conditions.
The fund, which is set to announce its fourth-quarter results this Friday, saw a 6% increase in shares in 2023 after a decline of more than 20% in 2022. However, it is entering a “more mature” phase of its business, following years of strong asset growth. Analysts are anticipating a decline in revenue for the company’s fourth quarter.
This news comes as BlackRock shares on the New York Stock Exchange were down around 0.5% shortly after 2:30 pm local time. The company’s layoffs reflect a trend seen in many large financial firms, which have hired significant numbers of employees in recent years, with BlackRock increasing its workforce by more than 20% over the past three years.