HONG KONG — WE Communications is winding down its Hong Kong presence, PRovoke Media can reveal, letting go of eight staffers including GM Kevin Hartnett.

The decision, said WE global COO Kass Sells, was made at the end of 2019 and was not impacted by the current Covid-19 crisis. Rather, said Sells, it was based on WE Hong Kong's consumer focus and diminishing returns from its operation there, after last year's protests severely affected the city's consumer market. 

"We've had a very consumer-focused office in Hong Kong and that has decreased dramatically," he said, noting that the office's lease expires at the end of the firm's fiscal year in June.

WE entered Hong Kong in 2005 when it acquired Shout Communications. In recent years, the office has experienced considerable senior-level turnover. Hartnett took over as GM last year after the departure of Anne Geronomi, but the operation has been winding down its client obligations since conducting a strategic review in late 2019.

"I think being consumer focused has left our business more exposed," said Penny Burgess (pictured), who oversees Greater China as CEO of WE Red Bridge. "I think if you have a mixed portfolio, there is still a lot of business to be done in Hong Kong. We still intend to pursue business in Hong Kong, but we'll do that through our Asian network." 

Accordingly, WE Hong Kong's two remaining clients will be hubbed out of Shanghai, where WE Red Bridge is headquartered, while Watatawa and WE Singapore will lead corporate and technology, respectively. Two back-office staffers will continue to support WE's network remotely from Hong Kong.

WE Red Bridge currently counts 110 people across Shanghai and Beijing. In addition to Singapore, the firm's Asia-Pacific presence also includes offices in Australia and India. 

Burgess noted that she remains "quietly optimistic" about a rebound in the mainland China market. "Obviously there was a short term hit, [but] there's a lot of expectation that consumer and domestic travel will be strong over the summer months."