Tiger Brokers New Zealand has proposed cutting between 30 and 40% of its workforce, months after being hit with a regulatory fine exceeding NZ$100 million linked to activities in China, as reported by RNZ
The online brokerage, which employs around 50 people in New Zealand, has begun consulting staff on the proposed changes. No final decisions have been made.
"At this stage, the restructuring is a proposal and no final decisions have been made," Tiger Brokers New Zealand said in a statement to RNZ.
Fallout from penalty
The proposed job cuts follow a fine imposed by the China Securities Regulatory Commission after authorities tightened restrictions on overseas fund transfers by Chinese residents.
Tiger Brokers NZ, part of NASDAQ-listed UP Fintech, was the only subsidiary within the global group to face the penalty.
Earlier this month, the company confirmed it would pay the fine while maintaining that its New Zealand operations would continue as usual.
Business as usual
Despite the proposed workforce reduction, Tiger Brokers said its New Zealand business remains committed to operating within regulatory requirements.
"The New Zealand business will continue to operate within the boundaries required by relevant law," the company said.
The brokerage has operated in New Zealand for more than a decade and facilitates more than US$35 billion (NZ$61 billion) in online trades annually.
Staff consultation
Employees are being consulted this week as the company reviews its organisational structure.
Tiger Brokers NZ Managing Director Vincent Cheung previously told RNZ that the wider group's financial position remained strong and that the New Zealand business would continue operating normally despite the regulatory action.
The proposed restructuring represents a significant workforce reduction for one of New Zealand's largest online brokerage firms as it responds to the financial impact of the China-related penalty.