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BlackRock freezes hiring, cuts spending, CFO says

According to BlackRock Inc’s Chief Financial Officer Gary Shedlin, the asset manager has frozen most hiring as it seeks to reduce expenses.

At a financial conference hosted by Goldman Sachs, Shedlin said the measures were expected to place BlackRock in a better position in 2023.

The CFO noted the company had faced some weakness in retail mutual funds, but still, he expected a sizable improvement in performance fees from illiquid businesses during the upcoming years.

Shedlin had said in October that BlackRock began “to more aggressively manage the pace of certain discretionary spend.”

The company reported a 16% year-on-year slump to $7.96 billion in its assets under management during the third quarter, as US Dollar strength weighed on the value of investments in Europe and Asia.

BlackRock also posted a 16% drop in its third-quarter adjusted earnings to $9.55 per share.

The shares of BlackRock Inc (BLK) closed 0.34% ($2.41) higher at $710.29 in New York on Tuesday, with the company’s total market capitalization now standing at $106.68 billion.

The asset manager’s shares have retreated 22.42% so far in 2022, while underperforming the benchmark index, S&P 500 (SPX), which has lost 17.31% of its value.

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