The world's largest asset manager is cutting more jobs than ever in its 31-year history. Blackrock's employees in Switzerland won't be spared, finews.com has learned.
It is the largest bloodletting the firm has ever seen: New York-based Blackrock is cutting 500 jobs globally, according to various media reports.
After years of hiring, the asset manager is making changes to the size and skills of its staff. «The changes we are making now will help us continue to invest in our most important strategic growth opportunities for the future,» Blackrock president Rob Kapito wrote in a memo to staff.
Swiss Cuts
That means 500 employees – nearly 4 percent of Blackrock's 13,900 total – will leave in coming weeks. The cuts are happening throughout regions and across ranks and titles.
Blackrock's Swiss operations haven't been spared. The asset manager, which maintains offices in Zurich and Geneva, will cut a single-digit number of jobs of its 100 total, finews.com has learned. The proportion to total staff in the country is on par with cuts seen in other regions.
Languishing Stock
Kapito flagged some business areas as more vulnerable to cuts, as Blackrock seeks to bolster staff in areas it views as higher growth. He emphasized that the company's staff tally will still be 4 percent higher after the cuts than it was last year. «2018 was a year of significant investment in growth.»
The cuts in Switzerland, where Blackrock manages roughly $100 million, will be overseen by Mirjam Staub-Bisang, who took over the business two months ago, as finews.com reported.
The move is likely to jumpstart Blackrock's languishing stock. The shares have slumped by more than one-quarter to $380 from $520 one year ago.
