(Bloomberg) -- Citic Securities Co., which is accelerating a push to integrate overseas units, has seen almost 50 employees leave in Hong Kong since November, a person with knowledge of the matter said.
In May, the Chinese securities firm cut 16 jobs as it moved to close down some underperforming funds at its asset management unit, said the person, who asked not to be named discussing private information. Another 31 people from other divisions have left on their own volition as the company worked to integrate its international operations with CLSA Ltd., which it acquired four years ago, the person said.
Citic Securities paid about $1.2 billion for CLSA as it stepped up efforts to expand abroad, and merged its Hong Kong investment-banking operations with those of CLSA in 2015. In November, the Beijing-based brokerage decided to combine all the overseas businesses of CLSA and Citic Securities International, known as CSI, under one brand.
A representative for CLSA declined to comment.
Citic Securities in November named Tang Zhenyi as chairman of CLSA, as Jonathan Slone relinquished that role while remaining chief executive of the brokerage. As Tang accelerated efforts to integrate CLSA and Citic Securities International, some employees declined job offers within the merged entity and left the company, the person said. In total, the departures represent about 5 percent of the firm's workforce in Hong Kong.
As part of an earlier effort to cut costs, CLSA asked its 1,500 staff worldwide to take unpaid leave for up to 10 days between August and March. It shut down its U.S. equity research operations in February, laying off 90 employees based in the country.
Of the 16 people who lost their jobs at Citic Securities's investment-management unit in Hong Kong, 11 were fund managers while the rest were traders, the person said. The Beijing-based brokerage plans to rebrand the unit as CLSA Alternative Investment Management Ltd. and will initially add five people at the business, according to the person.
To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net.
To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Darren Boey, Philip Lagerkranser
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