- This move is aimed at adjusting to internal shifts and market changes.
- BlackRock’s ESG investments faced controversy, prompting a shift in focus.
BlackRock is set to trim its workforce by 3 percent, spelling potential layoffs for around 600 employees. This move, as reported by Fox Business, comes as the company aims to navigate internal adjustments and external market dynamics.
The impending job cuts, while labeled as routine internally, signify a notable shift for BlackRock. After years of asset growth, the firm seems to be settling into a more mature phase, as evidenced by declining assets under management (AUM), currently at $9 trillion from a high of over $10 trillion in 2022.
BlackRock’s venture into Environmental Social Governance (ESG) investment strategy has led to controversy. The company, now downplaying its ESG operations in the US, faces criticism amid asset declines within ‘green’ investment funds.
Despite the layoffs, BlackRock is reportedly steering its resources toward tech investment and alternative products, signaling a strategic shift from traditional stocks and bonds.
See Related: BlackRock Bitcoin ETF’s Outline Market Manipulation Control
BlackRock’s ESG Controversy
While facing setbacks in the US, ESG remains a significant force for BlackRock’s international clientele, especially in Europe and the Middle East. Simultaneously, the firm eagerly anticipates SEC approval for its spot Bitcoin exchange-traded fund (ETF), a groundbreaking step in crypto investments.
The Securities and Exchange Commission (SEC) is on the verge of a transformative decision that could pave the way for the approval of spot Bitcoin ETF in the United States.
Recent discussions between investment management firms, stock exchanges, and the SEC involve refining crucial S-1 prospectus documents integral for ETF approval. Notably, some asset managers intend to update their filings, disclosing specific details regarding fees and market-maker identities ahead of Monday’s deadline.
The SEC’s recent formal requests have included calls for aspiring ETF launchers to seek an accelerated effective date. Bloomberg’s report indicates the possibility of an SEC commissioner vote on the 19b-4 rule changes, potentially scheduled for Wednesday.
