IDD Daily Updates and Restructuring Alert Weekly Updates, our email alerts
BlackRock Planning Layoffs
The asset manager experienced a drop in assets under management and declining profits.
November 18, 2008
The massive declines in the stock market have taken their toll on asset manager BlackRock, whose assets under management fell by $169 billion in the third quarter. Now the firm is expected to slash its workforce, which is made up of 5,500 professionals, a company spokesperson has confirmed to IDD.
It’s the first time in its two-decade history that BlackRock has cut its workforce. The number of layoffs has not yet been disclosed.
BlackRock sent a memo to its employees outlining the forthcoming job cuts, and formal dismissal notices will be distributed this week. “Times like these require fiscal discipline,” the memo, which was unsigned, read. “We expect it of the companies in which we invest, and we must expect it of ourselves.” It went on to say, "These decisions, which will be communicated this week, are very difficult. We will work with everyone affected to help them with the transition."
Last month, BlackRock reported a 15% drop in third-quarter earnings, and a 12%decline in assets under management, to $1.26 trillion.
The news comes on the heels of yesterday’s news that Citigroup would cut as many as 50,000 jobs as part of a broader plan to streamline its operations.
Additionally, last month it was disclosed that mutual fund giant Fidelity Investments could slash as many as 4,000 jobs, or 9% of its workforce.
The shares were off fractionally in mid-afternoon trading, at $105.71.
For more information on related topics, visit the following:
