BlackRock to Reduce Its Workforce by 1%

Investing.com -- BlackRock Inc. has announced plans to reduce its workforce by approximately 1% as part of a strategic restructuring. According to Bloomberg's report on Wednesday, this decision follows the company’s acquisition of over $25 billion in private market assets and data capabilities last year.

The workforce reduction decision was communicated to BlackRock employees via a memorandum sent by President Rob Kapito and Chief Operating Officer Rob Goldstein on Wednesday. In a company with a total headcount exceeding 21,000, these cuts will affect approximately 200 employees.

In the memorandum, Kapito and Goldstein stated: "As part of a company-wide initiative, we will implement changes that will see about 1% of our colleagues depart today. This is never an easy decision."

Despite the layoffs, BlackRock's overall headcount is expected to increase. The firm added 3,750 employees in 2024 and plans to hire an additional 2,000 this year following its acquisitions of Global Infrastructure Partners and private credit firm HPS Investment Partners.

In the memorandum, BlackRock executives expressed their belief in the strategic benefits of these investments, stating: "We believe these investments have made us a stronger and more dynamic organization for serving clients in the long term. These investments will enable us to accelerate our momentum by 2025."