© Reuters.
NEW YORK – BlackRock Inc, the world’s largest asset manager, is set to reduce its workforce by about 3%, which will affect some 600 employees. The move comes as the company’s shares have shown signs of recovery, rising 6% in 2023 after a 21% decline the previous year.
The layoffs are part of a restructuring process linked to performance. Despite impending job cuts, BlackRock is actively pursuing new growth avenues, particularly in the digital assets space. The company is currently awaiting a decision from the United States Securities and Exchange Commission (SEC) on the approval of its iShares Bitcoin Trust, a product that could begin trading as early as next Wednesday if approved. BlackRock has committed to paying $2 billion to start trading this exchange-traded fund (ETF).
CEO Larry Fink highlighted bitcoin’s potential, calling it a “flight to quality” and highlighting the company’s strategic interest in digital assets. The wait for the SEC’s decision coincides with the publication of BlackRock’s results, scheduled before January 12. The outcome of the SEC’s review and upcoming earnings report will likely be important factors in the company’s strategy and near-term market performance.
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