BlackRock which is “one of the world’s leading providers of investment, advisory and risk management solutions” according to Bloomberg saw their assets undermanagement drop significantly in the last year. The firm’s assets dropped from $9.5 trillion down to $8 trillion seeing a $1.5 trillion dollar loss in assets.
BlackRock also plans to let go around 500 of the workforce in order to try and mitigate the current market conditions. With around 500 people being let go or around 3% of the entire workforce, BlackRock is seeing one of the worst performances in many years.
“The first half of 2022 brought an investment environment that we have not seen in decades,” said Fink in a second-quarter earnings report. “Investors are simultaneously navigating high inflation, rising rates, and the worst start to the year for both stocks and bonds in half a century.”
Image source CNBC
BlackRock being one of the strongest and largest financial institutions in the world experiencing such tremendous stress gives great insight on what other smaller and less established firms are likely experiencing..