There’s uncertainty on the London trading floor this week as news of job cuts broke over the weekend – with fears of losses on both sides of the pond.Â
The news broke over the weekend that the world’s largest asset manager plans to cut around 3% of its global workforce – amounting to around 600 people – in the midst of ESG controversy and political criticism in the US. BlackRock chief Larry Fink has become a lightning rod for Republican dissatisfaction, with some state pension funds pulling upwards of US$6 billion from the firm in protest against its ESG activities.
The cuts follow a similar round of lay-offs in June 2023, in which around 1% lost their jobs, while earlier in the year about 500 staff were cut.
Rumours suggest that the savings may be directed into technology and alternative products, away from traditional equities and fixed income investment.
Unsurprisingly, employees are currently tight-lipped about their concerns, but BEST EXECUTION understands that London traders are nervous about what news this week might bring. BlackRock did not immediately respond to a request for comment.
The news comes as BlackRock expects its first Bitcoin spot ETF to be approved by the SEC this week – a landmark long in the making. (Watch this space for our upcoming analysis of the arena.)
©Markets Media Europe 2023
