(Bloomberg) — BlackRock Inc. informed workers it’s slicing roughly 1% of its workforce after it dedicated greater than $25 billion for acquisitions final yr to increase its attain in private-market property and knowledge.
The cuts are a part of BlackRock’s efforts to realign its assets with the agency’s technique, BlackRock President Rob Kapito and Chief Working Officer Rob Goldstein informed workers in a memo Wednesday.
The corporate has greater than 21,000 workers, that means the cuts apply to about 200 workers.
“As a part of these firmwide efforts, we might be making adjustments immediately that can see roughly 1% of our colleagues depart the agency,” they mentioned within the memo. “That is by no means straightforward.”
The agency added 3,750 workers final yr and expects to have 2,000 extra in 2025 following the offers for International Infrastructure Companions, non-public credit score store HPS Funding Companions and knowledge agency Preqin, in accordance with the memo.
The $12.5 billion acquisition of GIP was completed on Oct. 1, whereas the roughly $12 billion deal for HPS is expected to shut mid-year. The $3.2 billion Preqin transaction was expected to close earlier than year-end 2024, but it surely’s nonetheless pending.
“We imagine these investments make us a stronger and extra dynamic group that’s even higher positioned to serve shoppers over the long run,” the BlackRock executives wrote. “These investments will allow us to speed up our momentum in 2025.”
