BlackRock is all set to reduce its 20,000-strong workforce by 600 employees. That means, three per cent of the team will be rendered jobless amidst the firm’s attempts at reallocation of resources.
This is the third round of layoffs at the multinational investment-management corporation. In January 2023, it had let go 500 of its employees.
The layoffs do not mean that the company is pausing hiring. In fact, BlackRock intends to continue hiring people to ensure growth.
In a memo to the staff, Larry Fink, CEO and chairman, BlackRock, has shared that the cuts will impact businesses across the firm.
The reason for this downsizing is said to be the uncertainties and changes that are being experienced by the asset-management industry in general. The company clarifies that the firm has built a strong relationship with its clients and that 2024 will witness strong momentum. It has also increased its investment in artificial intelligence (AI) technology with an aim to improve productivity, ensure efficiency and transform processes.
In July 2023, BlackRock joined forces with the financial services arm of Jio. At the time of the announcement, BlackRock and Jio Financial Services, each planned to invest up to $150 million in the 50-50 venture.
The venture named, Jio BlackRock was aimed at placing the combined strength and scale of the two entities “in the hands of millions of investors in India”.
