Schroders has reportedly reduced its workforce size at its wholly-owned China fund management unit, Schroder Investment Management China (SIMC).

This decision is part of a strategy to manage costs under the leadership of new CEO Richard Oldfield, reported Reuters, citing sources.

Sources familiar with the matter indicated that the Shanghai-based unit, which was established in 2023, has axed around 10 employees from its team of 60.

The reductions primarily affected the unit’s wholesale sales and client-service personnel, with notifications being issued on 8 April.

Schroders has opted not to provide a comment on the situation. Various Western asset managers have faced challenges in China, with many encountering difficulties in establishing and maintaining operations in the market.

Despite these challenges, Schroders has maintained a significant presence in China through a joint venture (JV) with the Bank of Communications, which oversees assets worth approximately £68bn ($90bn).

SIMC currently manages around $1bn across four mutual funds, as estimated from quarterly reports.

Last month, Schroders announced that it aims to achieve £150m ($199m) in annual net cost savings over the next three years to drive “profitable growth”, with £20m ($26.5m) already realised in Q1 2025.

In addition to the layoffs, reports from December indicated that Schroders was exploring the sale of its Indonesian operations and was implementing broader cost-cutting measures.

The competitive landscape for SIMC is challenging, with both domestic and international fund managers vying for market share, as well as competition from its larger JV with Bocom.