In a memo obtained by Reuters, investment management firm, BlackRock, Inc. (BLK) reported on Monday that it now plans to lay off about 3% of its employees.
The firm will lay off 300 employees, or about 3% of its total workforce. According to the memo, selected employees will either be laid off immediately, or within the next weeks or months.
Although the firm is laying off a portion of its workforce, BlackRock plans to continue hiring by the end of the year and may even end up with more employees than it started with.
This plan is all a part of a larger reorganization plan within the company. BLK now plans to step away from larger acquisitions and to focus on obtaining new clients. The reorganization will focus on hiring employees in key areas of the business.
President of BlackRock, Rob Kapito commented, “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.”
BlackRock shares were mostly flat during premarket trading Tuesday. The stock has increased 24% in the past year.
The Bottom Line
Shares of BlackRock, Inc. (BLK) have a 2.63% yield, based on Monday’s closing price of $255.25.
BlackRock, Inc. (BLK) is a “Recommended” dividend stock at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.