BOSTON (Reuters) – U.S. asset manager BlackRock Inc (BLK.N: Quote, Profile, Research, Stock Buzz) warned its employees on Monday of impending job cuts to be made this week, saying it was looking for ways to reduce expenses in the challenging market and economic conditions.
The largest publicly traded U.S. asset manager joins a growing list of rivals who have announced job cuts as the financial crisis has battered asset values and triggered dramatic fund outflows.
“Expense policies and business practices will be tightened. However, it was not possible to reduce costs and achieve re-engineering efficiencies to the extent necessary without considering cuts in staffing. Some positions across the firm will be eliminated,” BlackRock said in a memo to employees.
The firm said the job cuts will be communicated to the affected employees this week.
The memo was published on finance industry blog Dealbreaker on Monday. BlackRock spokeswoman Bobbie Collins confirmed the contents of the memo but declined to give details on the job cuts.
Fidelity Investments, Janus Capital Group (JNS.N: Quote, Profile, Research, Stock Buzz), Legg Mason Inc (LM.N: Quote, Profile, Research, Stock Buzz) and Putnam Investments are among other money managers who have announced staff cuts.
BlackRock managed $1.26 trillion in assets at the end of September, which was down from $1.43 trillion at the end of June.
(Reporting by Muralikumar Anantharaman; Editing by Tim Dobbyn)