HONG KONG (Reuters) - Fund manager Fidelity International(FIL) is planning to lay off 20 people at its main China business unit, two sources familiar with the matter said, a move that comes amid a global downsizing by the firm and a downturn in China's markets.

FIL's wholly-owned China fund unit, which currently houses around 120 staff, will launch a cut equivalent to around 16% of its headcount, according to the sources, who declined to be named as they were not authorised to speak to media.

The fund management giant, which manages $776 billion of client assets, commenced a broader cost reduction programme globally earlier this month, expected to save around $125 million in 2024 with 9% of its workforce made redundant.

A FIL spokesperson said that a review on previously reported global role reductions is ongoing across business lines and geographies and no decisions have been made in relation to its China business.