BlackRock Reportedly Plans 3% Workforce Cut Amidst ETF Pursuit

• BlackRock is anticipated to get clearance from the U.S SEC as soon as next Wednesday.
• Reportedly, the possible rounds of layoffs have nothing to do with capital shortfall.

According to reports, investment banking behemoth BlackRock Inc. is planning to slash 3% of its employees in a massive reorganization similar to the mid-year layoffs that occurred in 2023. Charles Gasparino, a senior correspondent for Fox Business Network, claims that in three days the financial behemoth will announce the layoffs, which may result in the loss of 600 positions altogether.

The timing of this announcement couldn’t be more peculiar, considering that BlackRock is spearheading a pack of more than twelve applicants hoping to get permission for a spot Bitcoin ETF as early as Monday.

Quest of a Spot Bitcoin ETF

Actually, according to Charles Gasparino, the iShares Bitcoin Trust product from BlackRock is anticipated to get clearance from the U.S SEC as soon as next Wednesday.

Reportedly, the possible rounds of layoffs have nothing to do with capital shortfall and everything to do with the performance of the impacted employees. As of 2022, BlackRock’s $8.59 trillion in assets under management solidified its position as the world’s biggest investment management organization.

The layoffs happened at the same exact moment, but that hasn’t stopped BlackRock from being resolute in its quest of a spot Bitcoin ETF.

Having raised over $2 billion to launch its ETF trading, the firm was the pioneer in seeding its spot Bitcoin ETF application last year. The layoffs are yet unofficial, but BlackRock is expected to submit its earnings report on January 12, which might be a pivotal moment in the company’s history.

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