Wall Street layoffs continue to spread! Asset management giant BlackRock, Inc. (BLK.US) cuts hundreds of jobs again.

Asset management giant BlackRock, Inc. (BLK.US) is laying off hundreds of employees globally, becoming the latest Wall Street financial firm to reduce its workforce in recent weeks. Sources say the layoffs account for approximately 1% of BlackRock, Inc.'s global workforce, or around 250 people, including members of the investment and sales teams. It was reported that BlackRock, Inc. also conducted two rounds of layoffs last year, each accounting for approximately 1% of the total global workforce. In response, a spokesperson for BlackRock, Inc. stated, "Enhancing BlackRock, Inc. remains a constant priority for us. We make decisions every year to ensure our resources align with our goals and to ensure we are able to provide excellent service to our clients both now and in the future." At the time of the latest layoffs, BlackRock, Inc.'s CEO Larry Fink is seeking to transform the world's largest asset management company and further expand into alternative investment fields. Since completing the $12 billion acquisition of private credit specialist HPS Investment Partners last July, BlackRock, Inc. has been integrating a new executive team and preparing to launch a series of new funds for wealthy individual investors. Other financial companies have also been seeking to reduce their workforce and control costs. Citigroup Inc. (C.US) is set to lay off approximately 1,000 employees this week. It was also reported that UBS Group AG (UBS.US) plans to conduct a round of layoffs this month, followed by another round later this year. It is worth noting that the plans and increasing implementation of artificial intelligence (AI) on Wall Street and the broader financial industry reveal how this technology will enhance and potentially replace human employees. Many large banks employ over 100,000 staff each, while the wider commercial bank system protected by the Federal Deposit Insurance Corporation (FDIC) employs nearly 2 million people. From bank tellers to traders earning multimillion-dollar salaries, to the large software engineering teams working on turning AI dreams into reality, all could be affected. JPMorgan Chase CEO Jamie Dimon recently stated, "AI will eliminate jobs. People need to face reality." He also mentioned that with the continued expansion of AI, as long as "we do a good job," JPMorgan Chase's workforce will remain stable or even grow. JPMorgan Chase President Marianne Lake was more direct in her description of workforce changes. She noted that operational productivity is expected to increase by 40% to 50% over the next five years, emphasizing that this will not lead to mass layoffs but rather slowing net manpower growth - each employee can tackle significantly more work with automation, digital assistants, and self-service tools. A memo jointly released by Goldman Sachs Group, Inc. CEO David Solomon, President John Elliott, and CFO Dennis Coke noted that AI will drive efficiency improvements within the company, ultimately leading to slower hiring and job reduction. Goldman Sachs Group, Inc. is no stranger to this, as it undergoes workforce optimization every year. Wells Fargo & Company CEO Charlie Scharf revealed that AI tools have increased engineer efficiency by 30%-35%. While programming positions have not been downsized yet, this technology will eventually allow banks to accomplish more with less manpower in areas such as compliance, legal, customer service centers, and banking business teams.