Fidelity International Laid off 100 Employees in China

Rumors have been circulating on Chinese social media about Fidelity International laying off 100 employees in Dalian, China.

Sources familiar with the situation, as reported by Chinese media Yicai, have indicated that the layoffs primarily affect Fidelity International’s Excellence Center in Dalian, which supports various global business needs, including technology, operations, and investment research.

According to some insiders speaking to reporters, the departments impacted by the layoffs mainly serve the North American business. Fidelity International oversees the international investment business of Fidelity Investments, focusing on North America. It operates as an independent entity managing $350 billion in assets across 24 countries. Fidelity Investments is among the largest pension investment management institutions in the United States.

In response to the rumors of layoffs, Fidelity International revealed that, after careful consideration, they have decided to optimize some functions currently managed and supported by the Dalian Excellence Center. This decision aligns with the company’s strategic focus on enhancing efficiency. Additionally, Fidelity International plans to introduce new functions in Dalian to expand its operations and leverage the advantages of local talent.

The organization also emphasized that while the total number of employees in Dalian will decrease, the city remains a crucial Excellence Center. Fidelity International remains committed to continuing its mutual fund business in China, which includes pension and asset management, to assist Chinese investors in achieving their long-term financial objectives.

Fidelity International established representative offices in Shanghai and Beijing in 2004 and 2008, respectively. In 2007, it set up a technology and operations center in Dalian, employing over a thousand staff members.

In January 2017, Fidelity International became the first foreign asset management company to obtain the WFOE PFM qualification (Wholly Foreign-Owned Enterprise Private Fund Manager). In August 2021, the China Securities Regulatory Commission approved the establishment of Fidelity Fund Management (China) Co., Ltd. This milestone marked Fidelity’s qualification as a public fund manager in China. At its peak, the company had nearly 200 employees and has launched several equity and bond fund products in the past two years. It continues to strive for pension investment qualifications to expand into China’s “third pillar” market.

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