BlackRock, an American global investment management corporation based in New York City plans to reduce its headcount by 3 percent, in the coming weeks as it looks to simplify the organization and bring the firm closer together.
BlackRock President Rob Kapito said in a memo, “The changes we are making now will help us continue to invest in our most important strategic growth opportunities for the future."
While about 500 jobs will be cut, the company’s headcount will still remain 4 percent higher than a year ago. As these job cuts will lead to a reduction in the cost, BlackRock will be able to focus on creating new opportunities to drive growth and serve their clients.
A few days back, Chief Executive Officer Larry Fink also gave Mark Wiedman, the executive behind the company's iShares ETF brand, a new job of overseeing strategy, marketing and international businesses as BlackRock trains possible successors to Larry Fink, BlackRock’s CEO.
BlackRock currently has more than $6 Tn in assets under management and its iShares unit has a leading position in ETFs, which typically track the market and charge lower fees than products that try to beat the market. Going forward, the company not only has to maintain its position but also zero in new businesses and tap on the new opportunities that keep on emerging in the rapidly evolving business environment.
As BlackRock embarks on its next phase of growth, the company may expect a lot of structural and leadership changes.
Image credit: alliance/dpa/BlackRock