© Reuters.
NEW YORK – BlackRock Inc (NYSE:)., the world’s largest asset manager, will reduce its workforce by approximately 3%, affecting around 600 employees. This move comes as the company’s shares have shown signs of recovery, rising 6% in 2023 after a 21% drop the previous year.
The layoffs are part of a performance-related restructuring process. Despite looming job cuts, BlackRock is actively pursuing new avenues for growth, particularly in the digital assets space. The company is currently awaiting a decision from the US Securities and Exchange Commission (SEC) on the approval of its iShares Trust, a product that could potentially begin trading next Wednesday if approved. BlackRock has committed $2 billion to boost the operations of this exchange-traded fund (ETF).
CEO Larry Fink has highlighted Bitcoin’s potential, referring to it as a “flight to quality” and underscoring the company’s strategic focus on digital assets. The anticipation around the SEC’s decision coincides with BlackRock’s expected earnings report, due out before January 12. The outcome of the SEC review and the upcoming earnings report are likely to be important factors in the company’s strategy and market performance in the coming years. term.
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