BlackRock plans to cut 500 workers after last year's market downturn – Yahoo Finance

black rock (black), the world’s largest asset manager, will lay off about 500 employees (about 3% of its workforce). According to an internal email confirmed by Yahoo Finance.

The investment giant joins a growing number of Wall Street firms cutting jobs after last year’s market crash. Corporate America ramps up hiring freezes and job cuts.

In a memo sent to employees on Wednesday, Chief Executive Larry Fink and BlackRock President Rob Capito said, “After a significant increase in headcount over the past few years, this week we have seen a significant increase in the size of our workforce. “As a result of these actions, approximately 500 (or less than 3%) of our colleagues will leave BlackRock to reallocate resources to our most important growth opportunities. increase.”

BlackRock Chairman and CEO Larry Fink speaks at the Clinton Global Initiative (CGI) conference in Manhattan, New York City, USA, September 19, 2022. REUTERS/David ‘Dee’ Delgado

BlackRock will grow its workforce by about 8% in 2022, and has grown by 22% over the past three years, Fink and Kapito said in a message. Even after retirement, the headcount at the asset manager is 5% higher than he was a year ago.

The company did not immediately indicate which divisions would be cut. As of September 30, BlackRock has 19,900 employees in 30 countries around the world. According to the latest quarterly report.

BlackRock has approximately $8 trillion in assets under management, down from a peak of $10 trillion in early 2022.

“We and our clients continue to struggle with market volatility and uncertainty as both the equity and fixed income markets see significant declines in 2022,” the email said.

Last year, global equities and bonds Ended the worst year since As the financial crisis of 2008 Central banks rushed to curb historic inflation The most aggressive interest rate hikes in decades and the war in Ukraine have hit financial markets.

While the benchmark S&P 500 fell 19.4% in 2022, 10-year US Treasury yields rose from around 1.5% in early 2022 before settling at 3.88% on the last trading day of the year.

“The uncertainty surrounding us makes it more important than ever to stay ahead of market changes and focus on delivering to our clients.”

BlackRock’s announcement comes as investment bank Goldman Sachs prepares to cut thousands of jobs this week. Goldman is expected to cut up to 3,200 jobs across the bank, according to a source familiar with the matter.

Alexandra Semenova is a reporter at Yahoo Finance. follow her on her twitter @alexandraandnyc

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