BlackRock, the world’s largest asset management firm, has announced plans to trim its workforce by 1%, affecting approximately 300 employees.
This marks the second round of layoffs at the company in 2025, following a similar reduction earlier in the year.
The decision comes despite BlackRock’s recent expansion, which saw its employee base grow by 14% due to major acquisitions.
The layoffs reflect a broader cost-cutting trend across Wall Street, as financial firms seek to streamline operations amid rising economic pressures.
BlackRock’s move aligns with similar workforce reductions at Morgan Stanley, Goldman Sachs, and Bank of America, all of which have recently trimmed headcounts in their investment banking divisions.
BlackRock Workforce Strategy and Recent Expansions
Despite the layoffs, BlackRock has been actively expanding its presence in private markets through high-profile acquisitions.
In October 2024, the firm completed a $12.5 billion acquisition of Global Infrastructure Partners, strengthening its infrastructure investment capabilities.
Additionally, in March 2025, BlackRock finalized a $3.2 billion deal to acquire Preqin Ltd., a leading data provider for private markets.
The company is also in the process of acquiring HPS Investment Partners for $12 billion, a move expected to increase its private markets fee-paying assets under management (AUM) by 40% and boost management fees by 35%.
Impact on Employees and Industry Trends
As of March 2025, BlackRock employed approximately 22,600 people globally.
The upcoming layoffs will affect roles across various divisions, though the company has not disclosed specific departments targeted for reductions.
The job cuts highlight the volatility in financial sector employment, even as firms pursue aggressive expansion strategies.
Wall Street firms, including Morgan Stanley and Goldman Sachs, have faced similar challenges, balancing growth initiatives with cost management.
BlackRock’s Long-Term Growth Strategy
Despite the layoffs, BlackRock remains well-positioned for future growth, thanks to its strong AUM balance, product diversification, and expansion into private markets.
Over the past five years, the company’s AUM has grown at a compound annual growth rate (CAGR) of 9.2%, while revenues have increased at a CAGR of 7%.
The firm’s inorganic growth efforts, including acquisitions of Global Infrastructure Partners and Preqin, are expected to provide highly recurring revenues, enhancing profitability and shareholder value.
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