CITIC layoffs 20 Bankers let go from Hong Kong's CLSA

China's CITIC Securities made workforce reductions this week by letting go of approximately 10 per cent of dealmakers from its offshore platform, CLSA. Additionally, the company offered to relocate bankers from Hong Kong to the mainland.

According to media reports, on Tuesday and Wednesday, the company reduced its investment banking division's staff by approximately 20 employees out of a total of around 200 in Hong Kong.

CLSA refused to provide a comment, and CITIC did not respond immediately to a request for comment from Reuters. The sources requested anonymity as the information had not been officially disclosed to the public yet.

The investment bank based in Hong Kong also made a demand this week that certain dealmakers relocate to the Chinese mainland, where their compensation would be adjusted to match local levels. Alternatively, they would face the possibility of losing their jobs, as reported by the sources.

On Tuesday, Reuters reported that over 30 per cent of CLSA's investment banking workforce in Hong Kong, consisting of 200 employees, may be eligible to receive the relocation offer.

The bank's parent firm CITIC made this unusual decision under the pressure to reduce costs and align with Beijing's common prosperity drive.