Moody’s shutting consulting business in China, laying off staff

US-headquartered credit rating firm Moody’s Corp is shutting its China consulting business and is laying off its staff at multiple locations in the country, news agency Reuters reported.

The credit rating company started winding down the business, Moody’s Analytics, in China this week. The move has affected more than 100 employees across Moody’s Beijing, Shanghai and Shenzhen offices.

The total headcount for the business unit could not immediately be ascertained.

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”.

Moody’s Analytics provides financial intelligence and analytical tools to domestic and foreign financial institutions.

Notably, China’s zero-Covid policy and its sporadic lockdowns are pushing multinational firms from its lands to different countries.

Recently, the EU Chamber of Commerce released a report that China had become less predictable, less reliable, and less efficient, resulting in several multinational firms considering shifting their operations out of China to other markets.

According to the EU Chamber of Commerce Survey, 50% of western firms reported that business in China had become more politicized in 2021 than it was in earlier years.

Last month, American tech giant Google (local time) announced that it was shutting down the Google Translate service in mainland China, citing low usage in the country.

Besides, other companies that have left China include Amazon, LinkedIn, Yahoo, and Microsoft. All these have also pulled out their operations in China.

Meanwhile, droves of migrant workers have been fleeing back to their hometowns from the country’s largest iPhone factory in Covid-hit Zhengzhou, amid a lockdown triggered by the Covid outbreak.

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