BlackRock (NYSE:BLK), the world’s largest asset manager, is reportedly laying off less than 1% of its staff as part of a reallocation of its budget to support specific critical priorities. The decision to downsize the workforce is the result of a recent review of BlackRock’s business.
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The announcement was made in a memo sent to the company’s employees by Chief Operating Officer Rob Goldstein and Global Head of Human Resources Caroline Heller. Interestingly, even with these staff reductions, the company intends to maintain its year-end headcount at a level higher than that of the previous year.
Indeed, earlier in January, BlackRock implemented a workforce reduction of approximately 2.5%, or around 500 positions. This decision was influenced by factors such as a slowdown in deal-making activities and increased concerns about a potential economic recession. These circumstances likely contributed to the company’s earlier round of job cuts.
Corporate Layoffs Persist
The macro challenges continue to persist in the present economic scenario due to high-interest rates and inflation. Thus, companies around the globe continue to trim their headcount to reduce expenses.
Reportedly, JPMorgan (JPM) recently laid off about 20 investment bankers in Asia. Also, at an industry conference held on June 14, Citigroup’s (C) CFO Mark Mason disclosed that the company has cut 1,600 jobs so far in the second quarter while providing a disappointing update on the company’s Q2 results.
Is BLK a Good Stock to Buy?
Owing to the company’s efforts to control costs, the top Wall Street analysts remain bullish on the stock. Of the 12 top analysts covering BlackRock, nine have a Buy rating and three suggest a Hold. Overall, the stock scores a Strong Buy consensus rating. Meanwhile, the average BLK stock price target stands at $761.75, implying an upside potential of 12.1%. Shares are down 3.2% year-to-date.
Furthermore, for investors wondering which analyst they could follow if they wanted to buy and sell BLK stock, the most accurate analyst covering the stock (on a one-year timeframe) is William Katz from Credit Suisse, with an average return of 22.12% per rating and an 79% success rate.
