BlackRock cutting 500 jobs or less than 3% of workforce
By Steve Gelsi
BlackRock layoffs come as Goldman Sachs and Coinbase announce fresh job cuts as the financial world reacts to risk-off environment
BlackRock Inc. on Wednesday added its name to the growing list of financial and other companies cutting jobs with plans to cut its workforce for the first time since 2019.
BlackRock Inc. (BLK) plans to cut about 500 positions or less than 3% of its workforce in the face of an "unprecedented market environment," a spokesperson for the asset management giant said in an email to MarketWatch.
"BLK is taking a set of targeted, disciplined actions to reshape its teams after meaningful headcount growth in recent years," the spokesperson said. "We are making some changes to the size and shape of our workforce."
BlackRock stock fell 0.5% on Wednesday as the broad equities market moved higher. The stock is down about 15% in the past year, compared to a loss of 16.2% by the S&P 500 and a drop of 13.8% by the Financial Select SPDR ETF (XLF).
The move comes as Goldman Sachs Group Inc. (GS) is expected to cut about 3,200 jobs this week, while Morgan Stanley (MS) is cutting about 3% of its workers, according to The Wall Street Journal.
Meanwhile, crypto exchange Coinbase Global Inc. (COIN)set plans to shed 950 positions.
For its part, J.P. Morgan Chase & Co. (JPM) continues to hire, CEO Jamie Dimon said in an interview this week.
Even with the job cuts, BlackRock will still have about 5% or 6% more workers than it did a year ago, the spokesperson said.
BlackRock increased its headcount by about 8% in 2022 and 22% over the past three years, the spokesperson said.
More color on the inner workings of Wall Street will come Friday as JPMorgan Chase, Bank of America Corp. (BAC), Wells Fargo & Co. (WFC) and Citigroup (C) provide quarterly earnings updates.
Morgan Stanley and Goldman Sachs report earnings on Jan. 17.
Also Read: Banks gain favor in risk-off environment but earnings uncertainty remains
In the third quarter, Wells Fargo was the only major Wall Street bank to report a lower headcount as of Sept. 30, as it trimmed its mortgage lending business due partly to higher interest rates that raised the cost of acquiring and refinancing property and dampened activity.
Business Insider and The Wall Street Journal initially reported the job cuts at BlackRock.
-Steve Gelsi
(END) Dow Jones Newswires
January 11, 2023 13:46 ET (18:46 GMT)
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