Fidelity International (FIL) is set to slash around 500 jobs at one of its tech and operations centres in Dalian, China, marking a significant reduction by a global financial firm in the Chinese market.

The company informed employees about the downsizing on Monday, according to sources familiar with the matter. Fidelity International’s Dalian centre, known as a “centre of excellence,” supports various technology, operations, and investment needs. The facility, established in 2011, employed 574 staff as of the end of 2023.

“Following a review, and in line with an organisation-wide focus on greater efficiency, we are streamlining some capabilities currently managed within the Dalian centre,” FIL said in a statement. The company did not comment on the number of job cuts.

In addition to the layoffs, FIL is also adding new capabilities in Dalian. However, the company did not disclose how many new jobs this would create. Previously in March, FIL aimed to cut around 9% of its global workforce, or about 1,000 jobs, as part of a broader downsizing effort. In China, these cuts were more severe, impacting at least 16% of its 120-employee mutual fund unit, according to sources.

Despite the downsizing, Fidelity International remains committed to expanding its mutual fund business in China. FIL’s actions in Dalian represent the largest job cuts by a global financial firm in China in recent years, affecting a significant portion of its local workforce. The company’s move aligns with its broader strategy to increase efficiency across its operations worldwide.

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Get updates on your preferred social platform

Follow us for the latest news, insider access to events and more.