Moody’s Corp (MCO.N) is shutting its China consulting business and is laying off people associated with the unit in multiple locations across the country, two people with knowledge of the matter said on Friday.
The U.S.-headquartered credit rating firm started winding down the business, Moody’s Analytics, in China this week, the people said on condition of anonymity as they are not authorised to speak to media.
The move, first announced internally on Monday, has affected more than 100 employees across Moody’s Beijing, Shanghai and Shenzhen offices, one of the sources said. Total headcount for the business unit could not immediately be ascertained.
Moody’s credit ratings business will continue to operate in the world’s second-largest economy, the source added.
Moody’s had flagged in a recent earnings call that it was “taking steps to align our global workforce with current and anticipated economic conditions,” a company spokesperson said in an emailed statement.
The firm continues to maintain a strong presence in China, the spokesperson added.
Moody’s Analytics provides financial intelligence and analytical tools to domestic and foreign financial institutions.
Its closure in China comes as the country’s banking sector increasingly favours domestic suppliers, the second source said.