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Tennessee Attorney General Jonathan Scumetti details the lawsuit against BlackRock regarding Varney & Company.
BlackRock, the world’s largest asset manager, plans to announce layoffs of about 3 percent of its global workforce in the coming days, Fox Business reported.
Sources said the layoffs of about 600 employees have not yet been reported but are described as routine within the company. BlackRock implemented similar layoffs last year based on employee performance metrics, the person added.
BlackRock stock rose 6% in 2023 after falling 21% in 2022. New client money into BlackRock’s robust exchange-traded fund business exploded last year, with $187 billion flowing into a basket of securities and into products that trade like stocks at major brokerages. exchange.
ticker | safety | last | change | change % |
---|---|---|---|---|
BLK | BlackRock Co., Ltd. | 782.83 | -3.12 | -0.40% |
On Wednesday, BlackRock expects approval from the Securities and Exchange Commission for a new Bitcoin “spot” ETF. A crypto investment product that tracks the daily price of the world’s most popular digital coin will be approved by securities regulators for the first time. Public stock market. Other asset managers are also hoping to get their ETFs approved.
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![Illustration shows the BlackRock logo on a smartphone with cryptocurrency displayed in the background](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/01/931/523/blackrock-cryptocurrency-illustration.jpg?ve=1&tl=1)
Asset management firm BlackRock plans to announce layoffs of about 3% of its global workforce in the coming days, Fox Business has learned. (Omar Marques/SOPA Images/LightRocket via Getty Images / Getty Images)
A BlackRock spokesperson did not comment on the layoffs. BlackRock is scheduled to report fourth-quarter results on Friday.
The likely impetus for the job cuts is that BlackRock is settling into a more mature stage of its business after years of significant increases in assets under management (AUM). Analyst consensus estimates for fourth-quarter earnings to be $8.71 per share, down 2.46% year over year.
BlackRock ended the third quarter of 2023 with $9 trillion in assets under management, but the company’s assets have declined significantly since peaking at over $10 trillion in 2022 amid instability in financial markets. are doing. The decline in assets comes as BlackRock has become a political lightning rod over the introduction of environmental and social governance investing (ESG), which directs investment funds to publicly traded companies in the sustainable energy sector and companies working to reduce their carbon footprint. What happened also happened. Advocate for corporate governance measures such as board diversity.
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![BlackRock CEO Larry Fink](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/01/931/523/blackrock-ceo-larry-fink.jpg?ve=1&tl=1)
BlackRock CEO Larry Fink attends roundtable discussion titled ‘Financing the New Climate Economy’ and opens day 5 to fund global energy transition investments There is an urgent need for a “new financial landscape” to (Sean Gallup/Getty Images/Getty Images)
Fox Business has revealed that the company has been deemphasizing its ESG business in the US amid the controversy. U.S. portfolio managers are no longer required to consider ESG metrics when not using ESG funds. In 2023, many so-called green investment funds will see their assets dwindle as investments in sustainable energy products fail to generate significant returns and underperform.
Larry Fink, the company’s founder and CEO, told FOX Business that he would no longer refer to the word ESG because of the controversy it has caused in political circles.
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![BlackRock NYSE Stock Exchange Trader](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2023/10/931/523/BlackRock-NYSE-trader.jpg?ve=1&tl=1)
A trader works as a screen displaying BlackRock trading information on the floor of the New York Stock Exchange (NYSE) on October 14, 2022 in New York City. (Reuters/Brendan McDiarmid/Reuters Photo)
As Republican officials, including several candidates for the Republican presidential nomination, attack BlackRock and ESG, pension fund operators in red states are withdrawing approximately $6 billion from BlackRock’s funds as a form of protest. pulled out.
Conspicuously silent in the BlackRock bashing is former President Donald Trump, the Republican front-runner. One reason may be that BlackRock once managed President Trump’s fortune, estimated to be in the billions of dollars. In 2017, President Trump said of Fink, “Larry has done a great job for me. He has managed a lot of my money. I have to say, he has given me great benefits. It brought me,” he said.
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Sources close to BlackRock told Fox Business that the free money from the layoffs will be used to expand into growth businesses such as technology investments and investments in so-called alternative products rather than stocks and bonds. .
Meanwhile, ESG remains big business for BlackRock’s international clients, including large sovereign wealth funds in Europe and the Middle East. Speaking at a recent event hosted by media outlet Semaphore, Mark Weedman, BlackRock’s head of client business, said ESG is a “customer demand” and that around $1 trillion in pure sustainable assets are in the black market. Said to be managed by the lock.
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