BlackRock intends to reduce 3% of its global workforce, which is reported to be a largest slash in work force since 2016.
The company has not disclosed the details of the businesses or geographic region, which are affected by the job cuts.
BlackRock has taken the decision to focus more on its crucial products such as exchange-traded funds (ETFs), as key competitors are making steps to concentrate on areas such as high-growth markets and technology.
BlackRock president Rob Kapito was quoted by Reuters as saying: “We are always looking for ways to improve how we operate, to simplify our processes and structures, to prudently manage expenses, and to accelerate growth.
“The changes we are making now will help us continue to invest in our most important strategic growth opportunities for the future.”
Based in New York City, BlackRock is an American global investment management corporation established in 1988. The company is said to manage $6.4 trillion in assets under management.
With offices in 30 countries, the company provides services to its customers in around 100 countries.
Last November, BlackRock announced its plans to expand its iShares suite of exchange-traded products (ETPs) to include factor-based commodity funds.
iShares initially intends to add two broad-based commodity ETPs with carry and multi-factor strategies. The proposed factor-based funds are the solutions in a eries of enhancements to iShares’ line-up of commodity ETPs.
iShares has also announced plans to continue to develop new products to meet investors’ needs and demands, as well as retain Bank of America Merrill Lynch and Morgan Stanley as index providers for commodities strategies.
In October 2018, BlackRock also secured a £30bn investment contract from Scottish Widows, a UK-based life insurance and pensions company owned by Lloyds Banking Group.
The firm has been selected after the review by the insurer and Lloyds Banking Group’s Wealth business of their asset management arrangements.
