U.S. Firm Forrester Research Shuts Down China Office

Forrester Research, a US technology research and advisory firm, is closing its office in China and laying off most of its analysts in the country amid an intensifying government crackdown on multinational consultancies, South China Morning Post (SCMP) reported.

Photo Insert: Forrester said it was shutting down its China office as part of a previously announced global restructuring.

The Boston-based company has already begun letting staff go in the country, with only a few employees being retained to wrap up ongoing projects, according to a person with knowledge of the matter, who declined to be identified because of the sensitivity of the issue.

The layoffs came as a surprise, the source said. In response to an inquiry by the SCMP, Forrester said on Wednesday it was shutting down its China office as part of a previously announced global restructuring.

"The unsteady economy, along with our ongoing product transformation, is the key driver for the change," the company said in a statement.

"We remain committed to servicing our clients in China and global clients with operations in China through our global research team." Over the past few months, Chinese officials have launched a series of investigations into global advisory firms with operations in the country.

Major targets included Boston-based Bain & Company, which has offered its employees in China a six-month leave with reduced pay after police last month questioned staff at its Shanghai offices, as well as New York-headquartered Mintz Group, which saw five of its local Chinese employees arrested.

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