(Bloomberg) -- Fidelity International plans to cut about 500 jobs at a China-based global technology and support center as it expands efforts to trim costs, according to people with knowledge of the matter.
The asset manager will cut the positions at its technology and operational support center in Dalian, a city in northeastern Liaoning province, the people said, asking not to be identified discussing private information. A smaller number of new jobs will also be added, the people said.
“Following a review, and in line with an organization-wide focus on greater efficiency, we are streamlining some capabilities currently managed within the Dalian center,” Fidelity said in an emailed statement. “At the same time, we are also adding new capabilities to be managed in Dalian where we can benefit from developing further scale and leveraging the strong talent pool.”
The reductions add to Fidelity’s earlier plans to shed about 1,000 jobs worldwide this year as it adjusts to a more challenging environment facing the asset management industry. Its wholly owned mutual fund unit in Shanghai, which trimmed about 20 jobs earlier this year as part of the global downsizing move, wasn’t impacted this time, the people said.
Reuters reported the latest job cuts earlier.
The center in Dalian, which supports a wide range of technology, operations and investment needs for Fidelity around the world, was set up in 2007 and employs more than 1,800 people, according to the company’s website.
“While the overall number of Dalian-based roles will see some reduction, Dalian remains a critical center of excellence,” the company said. “We also remain committed to growing our mutual fund business in China, with a footprint in pensions and asset management and a mission to help investors achieve their long-term financial goals.”
Fidelity won approval to start the wholly owned business in Shanghai in late 2022, and has since launched five funds. The company also has set up a Beijing branch and raised its registered capital earlier this year as it prepares for further growth.
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