Memo: BlackRock Says Those Affected By Layoffs Will Be "Treated Fairly And With Respect"

So that's nice for them.
Publish date:

Re: today's news of the firm's plan to cut 3% of employees:

Executive Communication

To: All employees

Dear colleagues,

You may have seen speculation in the media regarding potential role eliminations at BlackRock.

Being a global leader requires that we continually re-assess our organization to look for ways to serve clients better, operate more efficiently, focus resources on strategic priorities and create new opportunities for our strongest employees. This is especially critical when markets are uncertain.

Over the past three years, we have grown our employee base by more than 20%, or about 2,500 people, to support improvements in client service, technology and enhanced alpha generation. Now, while continuing to invest for growth, we are working on steps to increase our efficiency, and streamline and simplify areas of the organization.

While these steps have not been finalized, those affected by these changes will be treated fairly and with respect. We will communicate with you when these plans are finalized in the coming weeks.

We greatly appreciate the contribution that every employee at BlackRock is making and always seek to manage the organization in the best interests of our people, clients and shareholders.

Rob Kapito, President
Rob Goldstein, Chief Operating Officer

Earlier: Layoffs Watch ’16: BlackRock Planning To Cut 3% Of Global Headcount


At Some Point In The Future, BlackRock Might Sue Over Libor Manipulation

Or it might not. No one can say at this time. Charlie Gasparino reports: BlackRock has $240 billion in money market assets, much of which is priced off of Libor. Thus even artificially depressing Libor a bit could mean that the firm’s customers missed out on billions upon billions in investment returns. A BlackRock spokeswoman told FOX Business: “We are closely following the investigations as well as related litigation to assess the full implications and possible impact these events may have had on our clients and the cash markets. The implications of the various investigations and litigation are complex and it will be some time before greater clarity emerges.” Indeed, people inside BlackRock say assessing damages won’t be easy. First it’s unclear just how much the manipulation cost fund investors since the evidence so far shows that banks like Barclays only depressed their Libor submissions during certain periods of time, particularly during the financial crisis, when they didn’t want to alert investors that they were being charged higher interest rates to borrow money. BlackRock Mulls Legal Action Amid Libor Scandal [FBN]