BlackRock, the world’s largest asset manager, is cutting 500 staff members, citing market worries as the long bull run began settling down last year.
Considering that BlackRock employs more than 14,000 people, the cuts are about 3% of the firm’s team, but the reasoning behind it could forecast coming moves from other financial institutions.
“Market uncertainty is growing, investor preferences are evolving, and the ecosystem in which we operate is becoming increasingly complex,” according to a Thursday internal memo obtained by The Wall Street Journal. “The changes we are making now will help us continue to invest in our most important strategic growth opportunities for the future.”
The last time the company did something like that was in 2016, also a 3% cut. This time around, many institutions are getting rid of their money managers due to fees, and last year’s market slide didn’t do the asset management world any favors.
In the memo, the company said it will be making some “additional changes to simplify and enhance our organization in the weeks ahead.”
In last year’s third quarter, BlackRock investors withdrew a net $3.1 billion, the first outflow in three years. The firm’s stock has fallen more than one-third since last January’s high.
The company has more than $6 trillion in assets under management. BlackRock could not be reached for comment.