BofA cuts office space, Fidelity to lay off China staff

Bank of America is cutting some office space in its headquarters located in Hong Kong's Central district, according to people familiar with the matter, underscoring the headwinds for the city's commercial landlords.

The bank is letting go one-and-a-half floors in Cheung Kong Center, where its main office is, the people said.

BofA is moving staff in supporting roles to its back office in Kowloon Commerce Centre, where rents are lower. All the client-facing staff will continue to be based in the Central office, they added.

Diminishing demand from international banks is weighing on the commercial rental market. The banking and finance sector made up 18 percent of new leases by floor area in 2023, down from 29 percent in 2022, according to CBRE.

In other news, fund manager Fidelity International is planning to layoff 20 people at its main China unit, two sources said, a reduction that coincides with a downturn in China's markets as the firm cuts staff worldwide.

A spokesperson for the London-based fund house said a review of previously reported global role reductions is ongoing and no decisions have been made about its China business.