Swire cuts dozens of jobs in rare layoffs as China economy slows

[HONG KONG] Swire Group is laying off roughly 10 per cent of its employees at the Hong Kong head office, said people familiar with the matter.

The British conglomerate seeks to streamline operations amid China’s economic slowdown. 

The cut was made last week and affected some 40 people in divisions including sustainable development, finance and risk management, the people said, asking not to be identified.

Some department leaders were laid off, including group head of sustainability Mark Harper, they said. 

Swire Group, whose major businesses are held by Hong Kong-listed Swire Pacific, employs over 500 people in its head office in the Asian financial hub, the website says. The central operation has not seen layoffs on such a scale in recent years, based on public records. 

In response to Bloomberg News’ query on Wednesday (Nov 26), Swire Group said that it had reviewed its head office structure to improve overall efficiency and had streamlined some processes.

Harper did not respond to requests for comment sent via LinkedIn. 

China squeeze

The 209-year-old Swire Group has been squeezed by a sustained economic slowdown and property slump across Greater China, fuelling employee speculation that management aims to cut costs and boost efficiency through tools such as artificial intelligence.

One of the last remaining Hong Kong conglomerates with roots as a British trading house, Swire Group still relies heavily on the city and the Chinese mainland.

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As at the end of 2024, its flagship unit Swire Pacific – spanning property, beverages and aviation – made up 79 per cent of its revenue and held 91 per cent of its non-current assets in those markets.

That has left Swire Group exposed on all fronts as China’s economy weakens and US-China tensions deepen.

The property downturn in Hong Kong and the mainland has hit its biggest profit generator, real estate, while softer consumer spending has pressured its beverages business.

While its carrier Cathay Pacific Airways is showing signs of recovery, it has not been enough to offset wider headwinds. 

Swire Pacific reported a 71 per cent plunge in underlying profit in 2024, and fell 2 per cent in the first half of 2025. 

The group has doubled down on China in recent years.

Swire Properties committed HK$100 billion (S$16.7 billion) in 2022 for a decade-long regional expansion, and had deployed 67 per cent of that capital by the end of June. 

Some of those bets are coming to fruition. Four LVMH labels are set to open multi-story outlets in December at Swire Properties’ Beijing flagship, Taikoo Li Sanlitun.

A ship-shaped Louis Vuitton store that debuted in June at its Shanghai joint venture, HKRI Taikoo Hui, has driven online buzz and helped the mall double third-quarter retail sales. BLOOMBERG