When BlackRock reported third-quarter earnings in October, long-term net inflows were at their lowest point since 2016. (Photo: Bloomberg)
(Bloomberg) –BlackRock Inc. is cutting 3 percent of its global workforce, the largest reduction in its headcount since 2016.
The world's largest asset manager will dismiss about 500 employees in the weeks ahead, according to an internal memo viewed by Bloomberg News. The memo didn't specify which businesses will be most affected.
Pressures
Asset managers are under pressure as volatility roils markets and investors pile into low fee funds. The industry is also deploying technology across its businesses to reduce costs. State Street Corp., the giant custody bank and asset manager, trimmed its senior management ranks by 15 percent starting Wednesday, Bloomberg reported. AQR Capital Management, the quant manager, is also cutting jobs after a dismal performance in 2018.
“Market uncertainty is growing, investor preferences are evolving and the ecosystem in which we operate is becoming increasingly complex,” Rob Kapito, BlackRock's president, said in the memo.
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