BlackRock To Trim Staff By 3%, Adjust Its ESG Investment Tactics: Report

BlackRock Inc BLK, the world's largest money management firm, is set to reduce its global workforce by approximately 3 percent.

This decision translates to around 600 employees facing layoffs. The move is part of the company's ongoing adjustments as it navigates through a phase of maturity and changing market dynamics.

Fox Business reported that these impending job cuts, which have not been publicly disclosed until now, are supposedly part of BlackRock's routine internal processes. A similar strategy was employed last year, focusing on employee performance metrics, highlighting the firm's strategic shifts and its impact on the workforce.

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BlackRock's decision comes at a time when the firm is experiencing a shift in its asset management strategies, particularly in its approach to Environmental Social Governance (ESG) investing. ESG has been a focal point in recent years, directing investments towards sustainable energy and companies with strong records in carbon footprint reduction and corporate governance. 

The company's CEO, Larry Fink, has indicated a move away from the explicit use of the term "ESG" due to the political controversies it has stirred, according to Fox Business. This shift is evident as U.S. portfolio managers are no longer mandated to consider ESG metrics in non-ESG funds. 

Despite the pullback in its ESG focus in the U.S., BlackRock continues to manage a significant portion of assets in sustainable investments for its international clients. The firm's global presence and its management of around $1 trillion in pure sustainable assets for foreign customers, including large sovereign wealth funds in Europe and the Middle East, underscore the continued relevance of ESG in global markets.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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