Blackrock is reportedly to lay off approximately 600 employees, mainly from their ESG division

Blackrock is reportedly to lay off approximately 600 employees, mainly from their ESG division,, per FOX.

BlackRock is reportedly set to undergo job cuts affecting approximately 600 employees, characterized internally as routine and similar to last year's layoffs based on performance metrics. Despite a rebound in BlackRock's shares by 6% in 2023 after a 21% fall in 2022, the asset management giant is said to be entering a more mature phase, reflected in a projected 2.46% year-over-year decline in earnings for the fourth quarter.

The firm's assets under management (AUM) reached $9 trillion at the end of the third quarter, down from a peak of over $10 trillion in 2022. The decline in AUM coincided with controversies surrounding BlackRock's embrace of Environmental Social Governance (ESG) investing, with the firm reportedly de-emphasizing its ESG business in the U.S. amidst the scrutiny.

Analysts anticipate approval from the Securities and Exchange Commission for BlackRock's new Bitcoin "spot" ETF, a crypto investment product tracking the daily price of Bitcoin.