Due to worsening economic conditions which are impacting some of its customers, Li & Fung Ltd has frozen hiring in most locations, reduced travel and other discretionary expenses and anticipates laying off some staff after completing a “critical review of its cost structure.”

The Hong Kong-based company provides sourcing services for major U.S. brands as well as distributiing and retailing foreign brands in Asia.

While extensive efforts have been made to place employees in other divisions, those who cannot be placed elsewhere in the company will be made redundant, the company said in a release. Beyond their terms of employment and statutory requirements, the company will provide job placement and career counselling and a hotline for assistance. At this stage, it is envisaged that a limited number of employees working with business units whose customers have suffered most severely will be made redundant.

The company recognises the challenging times faced by companies worldwide. It will be monitoring market conditions to ensure the continuing strength of its franchise and to meet its responsibilities to all its stakeholders including customers, employees and shareholders.