Investment-management giant BlackRock Inc. has announced plans to lay off around 3% of its staff, roughly 600 employees, due to the “rapidly changing” economic environment and shifts in client demands.

In a memo to employees, Chief Executive Larry Fink and President Rob Capito expressed their expectation for the company’s workforce to grow by the end of the year as they continue to hire and develop capabilities to support key areas of growth.

BlackRock stated that more clients are opting to consolidate their portfolios with the company and are “re-risking” as interest rates stabilize. The executives also acknowledged that the industry is experiencing unprecedented change, thanks in large part to the success of BlackRock’s iShares team. They noted that exchange-traded funds (ETFs) are now widely used as the preferred vehicle for both index and active investment strategies.

The company also sees significant growth potential in various markets around the world, including Europe, the Middle East, India, and other Asian markets. Additionally, BlackRock emphasized that new technologies are on the verge of transforming not just their industry but every other industry as well.

According to sources familiar with the matter, no specific team at BlackRock is being targeted with these layoffs. This round of cuts follows a similar reduction in staff approximately one year ago, when the company announced it would let go of less than 3% of its employees. BlackRock currently employs around 20,000 individuals.

Bloomberg initially reported news of these layoffs earlier today, which caused BlackRock shares to decrease by 0.6%.

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