BlackRock is cutting hundreds of jobs worldwide, affecting about 1% of its workforce. The reductions hit investment and sales teams as the firm reshapes its business. CEO Larry Fink is steering the world’s largest asset manager deeper into alternative investments and private credit.

The move follows BlackRock’s $12 billion purchase of HPS Investment Partners in July. Integrating HPS leadership and launching new products for wealthy retail investors are priorities. BlackRock isn’t alone; other Wall Street firms are also trimming staff to control costs.

The firm already conducted two similar 1% cuts last year. With markets shifting, asset managers are repositioning for growth in private markets and fee-rich strategies. The question for investors is whether these steps will protect margins and keep BlackRock ahead of rivals.

Bloomberg reported the cuts, citing people familiar with the matter.