BlackRock to Cut More Than 1% Jobs in Second Round of Layoffs

BlackRock, Inc. BLK plans to cut 300 jobs, affecting more than 1% of its workforce. The news was first reported by Bloomberg, citing people familiar with the matter.

At the end of March 2025, the asset manager had nearly 22,600 employees.

This is the second time in 2025 that BLK is reducing its workforce. This January, the company said that it was cutting around 200 jobs as part of its efforts to realign its resources with the firm’s strategy.

Since 2023, following the acquisitions of Global Infrastructure Partners (completed in October 2024) and data firm Preqin Ltd. (closed in March 2025), BlackRock’s employee count has grown by more than 14%. In the first quarter of 2025, the company’s employee compensation and benefits expenses increased 7%.

Our View on BlackRock

BLK remains well-poised for growth thanks to its solid assets under management (AUM) balance, product diversification, expansion initiatives, enhancement of private markets capabilities and active equity business focus.

Over the last five years (2019-2024), BlackRock’s AUM witnessed a compound annual growth rate (CAGR) of 9.2%. Over the same period, the company’s revenues (on a GAAP basis) witnessed a CAGR of 7%.

BLK’s Inorganic Growth Efforts

Last year, BlackRock committed more than $25 billion for acquisitions to expand its reach in private-market assets and data.

In October 2024, it acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination capabilities. This March, BLK acquired Preqin for $3.2 billion to improve its private market offerings.

Highly recurring revenues from Preqin will provide BLK with a stable and growing income stream, enhancing its overall profitability. Furthermore, the expanded client base and enhanced technological capabilities will position BlackRock as a leader in the private markets data segment, driving long-term growth and shareholder value.

Also, in December 2024, BLK announced a definitive agreement to acquire HPS Investment Partners for $12 billion in an all-equity transaction. The acquisition is projected to increase BlackRock’s private markets fee-paying AUM and management fees by 40% and 35%, respectively. Additionally, the deal is expected to be modestly accretive to BLK’s adjusted earnings per share in the first year post-close.

Apart from these, over the years, the company acquired several firms across the globe, thus expanding its footprint and market share.

BLK’s Price Performance & Zacks Rank

So far this year, BlackRock shares have lost 3.9% compared with the industry’s decline of 11%.

Image Source: Zacks Investment Research

Currently, BLK carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Workforce Reduction Efforts by Other Finance Firms

A couple of days ago, it was reported that Citigroup C will cut about 3,500 jobs at two of its technology centers in China by the start of the fourth quarter of 2025. The reduction will take place at the China Citi Solution Centres in Shanghai and Dalian.

A source familiar with the matter said that most of the jobs that are being cut are full-time. Citigroup mentioned that some of the roles would be moved to its technology centers elsewhere without specifying the number of jobs or locations.

The move is part of Citigroup’s strategy to simplify and reduce its global technology operations to improve data management.

Last month, it was reported that the bank was planning to cut up to 200 information technology contractor jobs in China.

Likewise, last month, Reuters reported that HSBC Holdings plc HSBC plans to reduce its workforce in France by 348 jobs, accounting for 10% of its staff in the country. The move is part of the overall cost-cutting strategy by CEO Georges Elhedery, aiming to reduce expenses by $1.5 billion by 2026.

The job reductions will be implemented through a voluntary redundancy scheme, allowing employees to exit on mutually agreed terms. These cuts are part of a broader program of HSBC aimed at simplifying operations and enhancing efficiency in an increasingly competitive landscape.

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This article originally published on Zacks Investment Research (zacks.com).

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