- Chief Executive Officer Larry Fink sent a message to employees on Wednesday.
- Due to the worsening economy, they are carrying out a wave of mass layoffs.
BlackRock, which manages $10 trillion in assets, is dismissing up to 500 people in a first wave of layoffs since 2019. Even with the layoffs, the company’s worldwide staff of around 18,000 individuals is still very modest.
CEO of BlackRock, Larry Fink, wrote a note to workers today announcing the layoffs. The layoffs hit employees of one of the leading asset management organizations in the world after a terrible market slump in 2022.
BlackRock, with headquarters in New York, is a leading name and a major asset management organization. Now, for the first time in over three years due to the worsening economy, they are carrying out a wave of mass layoffs.
Attempt to Reduce Expenses
Chief Executive Officer Larry Fink sent a message to employees on Wednesday informing them of the layoffs. Additionally, impacted workers were notified thanks to Insider reporting. HR had informed bosses the day before of impending layoffs. This comes after the corporation made its first contact with management in October, requesting a list of potential layoffs.
Insiders also said that staff were apprehensive about layoffs “in recent months,” as whispers started to circulate. Employees at rival investment banks Goldman Sachs and Morgan Stanley are also bracing themselves for layoffs as the corporations attempt to reduce expenses in the wake of the financial crisis.
It was also noted in the report that New York-based managing directors gathered for an hour-long discussion on layoffs. Yet, it remains unclear which divisions of the workforce were hit the worst by the choices. In the document, CEO Larry Fink and CEO Rob Kapito discussed the company’s continued 22% employee growth over the course of three years. Specifically 8% expansion in 2022.
