NEW YORK - BlackRock Inc (NYSE:BLK)., the world's largest asset manager, is set to reduce its workforce by approximately 3%, impacting around 600 employees. This move comes as the company's shares have shown signs of recovery, with a 6% increase in 2023 following a 21% decline the previous year.
The layoffs are part of a performance-related restructuring process. Despite the impending job cuts, BlackRock is actively pursuing new growth avenues, particularly in the digital assets space. The firm is currently awaiting a decision from the U.S. Securities and Exchange Commission (SEC) on the approval of its iShares Bitcoin Trust, a product that could potentially start trading as early as next Wednesday if approved. BlackRock has committed $2 billion to kickstart trading for this exchange-traded fund (ETF).
CEO Larry Fink has highlighted Bitcoin's potential, referring to it as a "Flight to Quality" and underscoring the company's strategic focus on digital assets. The anticipation around the SEC's decision coincides with BlackRock's expected earnings report, which is slated to be released before January 12. The outcome of the SEC's review and the forthcoming earnings report are likely to be significant factors in the company's strategy and market performance in the near term.
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