BlackRock Inc (NYSE:BLK) is to cut around 3% of its staff just months after it warned it was feeling the impact of investors parking money in high-interest cash accounts.
Some 600 jobs will go out of a workforce of close to 20,000, said the world’s largest fund management group in a memo to staff, with the cuts spread among all of its various investment teams.
BlackRock had US$9.1 trillion assets under management at the end of October, down slightly from three months earlier.
The group has been heavily criticised after its ‘woke’ stance on ESG issues that led to some clients withdrawing their mandate.
At the time, chief executive Larry Fink blamed investors sitting on their hands and banking high returns from holding cash.
"For the first time in nearly two decades, clients are earning a real return in cash and can wait for more policy and market certainty before re-risking,” he said.
BlackRock cut a similar number of jobs this time last year and, in a hint at possible acquisitions, yesterday’s staff memo said that staff numbers would be higher by end 2024.
Fink has stated previously he wants “transformational deals” and to boost its Aladdin technology platform.
BlackRock’s fourth-quarter results are due this Friday.