BlackRock aims to increase its workforce by 2,000 by 2025. Credit: Tada Images/Shutterstock.

US-based asset manager BlackRock is reducing its employee headcount by approximately 1%, affecting around 200 employees.

This decision comes after the firm’s investments in expanding its private-market assets and data capabilities, including more than $25bn in acquisitions last year, reported Bloomberg.

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The retrenchment exercise is part of BlackRock’s strategic realignment, as conveyed by BlackRock president Rob Kapito and chief operating officer Rob Goldstein in a staff memo.

They stated, “As part of these firmwide efforts, we will be making changes today that will see approximately 1% of our colleagues leave the firm. This is never easy.”

The company, which currently employs more than 21,000 people, has seen substantial growth, adding 3,750 employees last year.

Despite the layoffs, BlackRock plans to grow its workforce by 2,000 employees by 2025.

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This follows the completion of the $12.5bn acquisition of Global Infrastructure Partners in October last year, and the anticipated mid-year closure of the approximately $12bn deal for HPS Investment Partners.

The $3.2bn acquisition of data firm Preqin was expected to be completed by the end of 2024, but it is still awaiting finalisation.

Last month, the UK Competition and Markets Authority (CMA) announced that it is reviewing BlackRock’s planned £2.55bn ($3.2bn) acquisition of Preqin, which could impact the private markets data sector.

The CMA will assess whether the deal could significantly reduce competition in the UK.

BlackRock executives said: “We believe these investments make us a stronger and more dynamic organisation that is even better positioned to serve clients over the long term.

“These investments will enable us to accelerate our momentum in 2025.”