Perform or you're out.
BlackRock intends to cut around 300 jobs, or almost 3% cent of its workforce, as the New York-based asset manager takes a more aggressive approach to culling poor performers.
The Financial Times reports that while BlackRock has cut staff before, following the financial crisis and during the integration of BGI, it is the first time it has adopted a company-wide approach to cull weak performers, something more typical of an investment bank. Goldman Sachs aims to let go around 5% cent of its weakest staff each year.
A person familiar with the company told the newspaper that the cuts would be felt at all levels.
Reuters reports that BlackRock President Rob Kapito told employees on Monday that despite the layoffs the firm, which oversees almost $4 trillion, would continue hiring and expected to end 2013 with more employees than it currently had.
'These moves will give high potential employees greater responsibility and additional career opportunities, and will make us a more agile organization better positioned to respond to changing client and market needs', Kapito said in the memo.
The layoffs follow BlackRock's reorganization, started last year, to refocus the New York-based firm away from growing through large acquisitions and more by attracting new clients.
BlackRock to axe poorer performing staff (subscriber content)
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