BlackRock is set to cut 500 jobs over the next few weeks, according to a memo seen by Reuters.
The world's largest asset manager will dimiss 3% of its global workforce, touching every region, seniority level, and business line, in the largest reduction in its headcount since 2016. The memo didn't specify which businesses will be most affected.
Reuters reports that the company says ETFs will be a key product area for that investment, with the focus on high-growth markets, technology and client interaction "while key competitors will be playing defense".
BlackRock reportedly said in the memo that headcount after the redundancies will remain 4% higher than 12 months previously on the back of investments it has made.
In the memo, BlackRock president Robert Kapito said: "We are always looking for ways to improve how we operate, to simplify our processes and structures, to prudently manage expenses, and to accelerate growth.
"The changes we are making now will help us continue to invest in our most important strategic growth opportunities for the future."
The memo said the company will continue to invest in high-growth areas of the market and technology while always improving the firm's relationship with clients.
The announcement came just a day after the firm disclosed a major executive change. Chief Executive Officer Larry Fink promoted Mark Wiedman, the head of BlackRock's powerhouse exchange-traded funds business, to a new global strategy role. Fink said more leadership changes were coming.
The $6.4trn asset manager last significantly reduced staff in 2016, trimming about 400 jobs — then a record cut. BlackRock has positioned both rounds of reductions as streamlining the business.