In brief: Sequoia Capital China to cut 20% of investment staff as tech industry slows (UPDATE)

(Update on May 7: Sequoia Capital China responded to the report, saying that the claims were “nonsense and malicious.” The firm also said that during the last 12 months, it hired a total of 13 people. Sequoia also threatened to take legal actions against media outlets publishing false reports.)

• Tech-focused venture capital firm Sequoia Capital China is set to cut 20% of its investment staff amid the country’s slowing tech industry, Reuters reports.
• The layoffs would follow a government campaign opposing debt financing, which resulted in startups competing to get fresh capital from a shrinking pool.
• Job cuts within the VC firm began in late March, affecting its technology and media, healthcare, consumer, and industrial technology teams, said two sources familiar with the matter.
• Sequoia Capital China said it frequently reviews its workforce, which could lead to staff adjustment.