BlackRock has joined the list of financial companies which has announced job cuts. This is for the first time that the company is laying off workers since 2019. Moreover, the asset management company will cut about 500 positions which is roughly 3% of its total workforce.

Job cuts on back of a major hiring spree

BlackRock inc. is the world’s leading asset management company/. Previously, the company went on a hiring spree over the past few as years. Significantly, BlackRock’s recruited more than 22% people over the last three years. According to its most recent 10-Q filing with the US Securities and Exchange Commission, it had 19,990 employees as of September 30. Moreover, the asset management giant did not conduct any major job cuts since 2019. However, the company has now announced to cut jobs in wake of an unprecedented market environment. Furthermore, they have become a latest major firm to cut jobs.

Reduction in profits

The announcement of job cuts came through an internal memo. The chief executive Larry Fink and president Rob Kapito issued the memo. However, BlackRock refused to comment on the job cuts. Initially, Business Insider first reported the job cuts news. Previously, BlackRock said in October that they are implementing hiring freeze due to dropping profits during the third fiscal quarter. Significantly, BlackRock’s profits dropped by 16% from previous year. In addition, BlackRock’s share price dropped 22.6 per cent last year. The increase in interest rates had a staggering effect on all asset management companies.

Layoffs in large companies across United States

A large number of companies in United States have announced job cuts in recent times. Moreover, Goldman Sachs planned to cut up to 5,200 jobs amid a slump in global economic uncertainty. In addition, Amazon announced last week that they are laying off around 18,000 employees across the globe. Similarly, tech firm Salesforce also announced to lay-off nearly 10% of its total workforce. However, contract to BlackRock a large number of companies disclosed their job cut plans.

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