BlackRock is reportedly laying off several hundred employees as it begins the new year. This move makes it one of the latest significant Wall Street firms to make cuts.
The world’s largest asset manager is set to eliminate around 250 positions within its investment and sales teams, which accounts for about 1% of its global workforce, as per a source cited by Bloomberg.
The specific timing of these layoffs and the precise reasons remain somewhat unclear. However, other banks and asset managers are reportedly linking their own job cuts to restructuring efforts, cost reductions, advances in artificial intelligence, and general economic uncertainty.
Citigroup, for instance, is expected to cut approximately 1,000 jobs this week, while UBS Group has announced plans for additional layoffs throughout the month and into the year.
A spokesperson for BlackRock mentioned that the job reductions aim to enhance efficiency. “Improving BlackRock is always a priority,” the spokesperson said. “Every year, we make decisions to ensure that our resources align with our goals and are positioned to serve our customers well now and in the future.”
On Tuesday, shares of BlackRock, which managed about $13.5 trillion in assets as of late September, experienced a slight drop of about 1%.
BlackRock chose not to comment directly to the Post.
The firm, previously having about 24,600 employees, had conducted two rounds of layoffs last year, each resulting in a cut of around 1% of its staff.
CEO Larry Fink is steering the company further into alternative investments.
In July, BlackRock completed its $12 billion acquisition of HPS Investment Partners, an alternative credit manager. Following that, it worked on integrating a new management team and launching new investment funds.
In its annual report for 2026, BlackRock emphasized its focus on investment themes like artificial intelligence, income generation, and diversification.
Jay Jacobs, who leads the exchange-traded funds division, mentioned, “The first question is: What are the biggest growth opportunities in today’s market?” during an interview. He highlighted the need to be more targeted in finding opportunities such as those in artificial intelligence that are likely to perform well now.
Jacobs also noted that BlackRock sees artificial intelligence as a long-term, capital-intensive trend that’s not going away anytime soon.
BlackRock is among the few firms offering AI-focused investment funds, including the Tech Active ETF, which has reportedly gained over $8 billion in assets.
Income remains a central priority for BlackRock as it predicts further interest rate cuts from the Federal Reserve, which could impact yields on cash investments.
Diversification is another key area highlighted in BlackRock’s annual report, as investors look for new asset opportunities.
Jacobs remarked on the importance of diversifying portfolios, pointing out that alternative assets tend to behave differently compared to stocks and bonds.
The company is set to announce its fourth-quarter results on Thursday.
