BlackRock, the world’s largest asset management firm, is preparing to cut approximately 600 jobs—3 percent of its global workforce—ahead of launching its anticipated cryptocurrency Exchange Traded Fund (ETF). The upcoming layoffs, which the company describes as “routine,” comes amid a backlash against BlackRock’s environmental, social, and governance (ESG) investment policies.
As reported by Fox Business by inside sources, the termination of around 600 BlackRock employees is being described internally as a standard review of employee performance, similar to what the company did in early 2023. The savings from these job cuts will be redirected toward new tech sector investments and other alternatives, in keeping with the company’s move away from stocks and bonds.
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This “routine” process follows a year of recovery for the mega money manager, which saw a 21 percent decline in its value in 2022. But after 2023 saw an additional $187 billion in customer investments, BlackRock rebounded and is now up by 6 percent, with the company managing $9.42 trillion in assets as of June.
The asset management group is also expecting the Securities and Exchange Commission (SEC) to approve its Bitcoin ETF application, mobilizing $2 billion for cryptocurrency investments.
BlackRock’s fourth-quarter earnings will be made public on Friday, December 12th.
Sources indicate that most of the expected layoffs will be in BlackRock’s various ESG departments, in keeping with the company’s efforts to distance itself from the controversial investment strategy.
Environmental, Social, and Governance policies account for a company’s support for environmental causes, involvement in social justice issues, and compliance with governmental ordinances. The ESG agenda has been spearheaded by investment firms and asset management groups — and BlackRock, the largest money manager in the world, has been its biggest proponent.
In recent years, these policies have become the driving force for left-wing agendas in corporate culture, responsible for racial bias training, carbon emission caps, and diversity, equity, and inclusion audits.
Related: Tennessee Sues BlackRock for “Misleading” ESG Investments
In recent years, ESG has become a political lightning rod for the asset managers behind the agenda, with multiple Republican lawmakers fully or partially divesting themselves from BlackRock and similar organizations.
As a result, BlackRock has pulled away from ESG investments, supporting less than 7 percent of the shareholder proposals that prioritize it in 2023. Company CEO Larry Fink also notably stopped using the acronym entirely to avoid stirring up further controversy.
Connor Walcott is a staff writer covering politics, culture, and business for Valuetainment.com. Follow Connor on X (Twitter).
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