Ahead of Bitcoin ETF Launch, BlackRock Announces Major Workforce Cuts
BlackRock, the world’s largest asset management firm, is reportedly reducing its global workforce by about 3%, just days before the expected approval of the firm’s spot Bitcoin ETF application.
The layoffs, which have not yet been officially announced, will affect roughly 600 employees, Fox Business reported on Saturday, citing a source familiar with the matter.
The move is strategically timed shortly ahead of a decision by the US Securities and Exchange Commission’s (SEC) on spot Bitcoin ETF applications from BlackRock and several other large asset managers in the US.
STATE OF PLAY on spot Bitcoin ETFs…
sources say:
– issuers have until 8am Monday to submit S-1s
– SEC plans to vote on 19b-4s in the coming days
if both 19b-4s and S-1s are approved, ETFs could start trading as soon as the next dayhttps://t.co/WZaUWv95jW w/ @allyversprille
— Katie Greifeld (@kgreifeld) January 8, 2024
BlackRock’s job cuts, described as “routine” by the sources, come on the heels of a similar round of layoffs in the previous year based on “employee performance metrics,” the report said.
Despite a 6% rebound in BlackRock’s shares in 2023 following a 21% decline in 2022, the firm is signaling a shift as it enters “a more mature phase” of its business, the Fox Business report said.
The impending layoffs are expected to contribute to the company’s strategic realignment, with the news outlet’s sources suggesting that the savings will be directed toward expanding into growth areas such as technology investing and alternative products.
Generally seen as a pioneer in so-called ESG (environmental, social and governance) investing, BlackRock has recently de-emphasized its ESG business in the US, with CEO Larry Fink previously saying he won’t mention the
