Credit Suisse has slashed nearly one-third of its investment banking workforce in China amid an overhaul of its global business and downturn in its Chinese operations, Reuters has reported citing sources familiar with the development.

The lay-off also includes around half of the Swiss bank’s research team in China.

Over 20 investment bankers in China received information about the layoff at Credit Suisse Securities (China), a joint venture where the bank owns a 51% stake, two unnamed sources told the publication.

As per the bank’s China annual report, it employed 68 people in its investment banking arm until the end of 2021.  

A number of Wall Street banks have been planning to reduce their China-based headcounts in Asia as strict Covid-19-induced regulations and poor growth in the country have plagued their businesses, added the sources.

Credit Suisse’s Chinese venture has already fired approximately ten employees in its research team, according to the sources.

The unit’s annual report revealed that it employed 24 people at the end of last year.

Credit Suisse refused to give any updates on the job cuts in China.

A Reuters report, published earlier this month, stated that the embattled bank is looking to reduce its workforce in Asia, which involved eight positions in Southeast Asia.

Credit Suisse CEO in Asia Pacific Edwin Low was quoted by Reuters earlier this month: “China and Hong Kong will be the biggest growth market” for Asia Pacific workforce in the wake of the bank’s plan to provide wealth management services in China next year.

Earlier this month, Credit Suisse reached deals to sell a portion of its Securitized Products Group (SPG) to Apollo Global Management.