Another round of layoffs has arrived at BlackRock’s doorstep. New reports have emerged on BlackRock’s headcount reduction attempts to bring numbers back down to more manageable levels, with 300 employees lined up on the chopping block. Marking BlackRock’s second job cut in 2025, the company is planning on bringing down its global workforce by about 1%.
Similar cuts were conducted earlier in the year, despite the company having also expanded its employee count recently. This is likely due to the inflated headcount following its multiple acquisitions and suggests the company is shifting its focus to different roles and turning around some of its departments to focus on other, more lucrative, areas. The company has not revealed which departments are bearing the brunt of the cuts, but we can confirm that 300 employees have been laid off at BlackRock.
BlackRock’s second job cut in 2025 set the stage for further downsizing. (Image: Pexels)
BlackRock layoffs Announced—A 1% Reduction in Headcount Guides the Way
As mentioned earlier, the BlackRock layoffs affect 300 employees, or 1% of the company’s global workforce. These layoffs mark the second round of cuts in 2025, following three rounds in the earlier years—500 job cuts in January 2023, less than 1% in June 2023, and 600 jobs in January 2024. Reportedly, the company had a headcount of approximately 22,600 workers globally at the end of March.
BlackRock Headcount Reductions Linked to Strategic Realignment of the Workforce
The leadership at BlackRock has hinted at the downsizing update being an effort towards realigning resources with the firm’s evolving strategy, particularly after the company spent over $25 billion on acquisitions in 2024. The company’s acquisitions include the firm Global Infrastructure Partners (GIP), which it acquired last October for $12.5 billion.
The company is also in the process of completing its acquisition of HPS Investment Partners for $12 billion, which is expected to wrap up soon in mid-2025. BlackRock recently took over data provider Preqin for around $3.2 billion, bringing the firm’s 1,600 employees under its own wing along with Preqin’s founder Mark O’Hare joining as a Vice Chairman.
These expansions have undoubtedly inflated BlackRock’s numbers and we expect that more cuts will arrive in the coming months to eliminate some of the excesses among the workforce. Roles that can be combined or done away with will be addressed promptly.
Industry and Technological Shifts Also Drive Layoffs Under Strenuous Market Conditions
The asset management industry is undergoing rapid change that is being driven by advancements in technology and the drive to adopt them on every level of the organization. Artificial Intelligence or AI is a prominent driver of layoffs across multiple industries, and BlackRock CEO Larry Fink has been a vocal supporter of the capabilities of AI.
He previously pointed out AI’s potential to increase productivity significantly, and this level of advancement could make more roles redundant and drive companies to prioritize talent that can put the tech to good use. The BlackRock job cuts and hires have not been explicitly linked to AI-motivated cuts, but we expect such thinking to lead the way behind the scenes. The CEO also indicated that AI investments could lead to higher wages, but we have seen no evidence of such trends thus far.
The BlackRock restructuring layoffs also come amid a backdrop of economic uncertainties, high interest rates, and a need to optimize costs following aggressive expansions. Broader workforce cuts have been witnessed across finance, tech, media, and other sectors in 2025. Companies like Microsoft, Meta, Ally Financial, and Starbucks have also announced job cuts, often citing AI-driven automation and cost optimization.
BlackRock’s focus on cost-cutting aligns with broader trends in its finance sector, where firms are adjusting to new interest rate environments and reduced deal flows.
BlackRock Layoffs and Subsequent Expansion Don’t Mean More Jobs for Employees
The BlackRock layoffs are small in scale, with only 1% of its headcount affected. By the end of 2025, the company is expected to end the year with a larger workforce than it started with. However, this isn’t the result of a hiring drive, but rather a consequence of the acquisitions being conducted by the company. The headcount estimates suggest its workforce will go up by 2,000 workers due to the merging of other organizations into its ranks.
As a result, the BlackRock restructuring layoffs largely bring ominous tidings for candidates looking for jobs as there are few companies actively on a hiring spree. Most headcount increases occur through mergers, and the hiring drives that are ongoing are primarily for low-wage positions at food and delivery services that increase seasonal hiring periodically to meet customer demands.
HR Implications As a Result of Industry-Wide Job Cuts
Recent reports on the functional unemployment levels in the country show that around 24% of Americans are facing near-unemployment conditions. One in four Americans are functionally unemployed, indicating that the job market isn’t the best place to find yourself right now.
BlackRock’s layoffs underscore the importance of aligning human capital with strategic priorities. HR teams across industries must balance short-term cost-cutting with long-term talent acquisition to support growth in emerging areas like AI and private markets. Morale among the workforce at BlackRock and in the country at large is particularly low in 2025, with workers dreading the possibility of job cuts coming for their positions next.
In 2025, it is more important than ever for HR teams to ensure robust severance benefits are provided to outgoing employees being released into an unstable job market. HR teams need to ensure transparent communication and implement strategies to engage the remaining employees and ensure they remain aligned with the overall business.
While voluntary attrition will continue to remain low, there are other quiet quitting trends that might prove to be more nefarious than one might think at first glance. HR teams have a critical role to play in keeping the workforce stable under the current conditions at work.
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