BlackRock to cut 500 jobs

One of the largest asset managers, BlackRock, is preparing to cut up to 500 jobs in the face of the risk of the recession, which would be its first round of job cuts since 2019.

According to Reuters, which quoted the Insider report, the asset manager would be also freezing hiring and reducing expenses due to short-term performance challenges.

The giant’s careers website states it has currently more than 16,000 employees in more than 35 countries.

Earlier this week, Goldman Sachs announced it would be reducing its workforce globally by over 3,000 people from its 49,100 global headcount, which also included job cuts to its Australian staff.

BlackRock has also announced a repositioning of its Australia equities business which will see the closure of its two funds.

“Following a review, BlackRock will maintain a core concentrated portfolio that is benchmarked to the ASX 300 index, offering clients greater diversifying exposures within the expanded investment universe. The evolved product offering will also take into account scale and volatility considerations that are in the best interest of unitholders,” the firm’s spokesperson said.

“This will see changes to the BlackRock High Conviction Australian Equity Fund, and result in the closure of the BlackRock High Conviction Australian Long Short Fund and the BlackRock High Conviction Australian Future Companies Fund.”

BlackRock has also entered a binding memorandum of understanding with the Pendal Group under which Pendal would work with BlackRock’s dedicated global manager research function within Multi-Asset Strategies and Solutions (MASS) team to transition the BlackRock High Conviction Australian Equity Fund in line with Pendal’s “Focus” strategy.

“Existing clients in the fund will benefit from a broader Australian equities exposure, with a similar high-conviction approach, managed by a well-resourced team of 19 investors that have a long-standing performance track record, and received the highest ratings available from Morningstar, Zenith and Lonsec.”