Huge wave of IT layoffs is about to happen in China
According to ReutersTens of thousands of people are likely to be laid off in the coming months at Alibaba and Tencent. This will be one of the biggest layoffs ever by companies.
A lot of tech workers at Tencent, Alibaba and ByteDance said they weren’t sure if the reports were accurate, but they braced themselves for the reduction. All asked to remain anonymous, as they were not authorized to speak to the press.
The reason for this wave of layoffs is that for years, China’s tech giants have been the default choice for aspiring university graduates. These corporations are even called “big factories” for job seekers. But under pressure from regulators, as well as a majority of workers expressing dissatisfaction about overtime, combined with a weak economy, things may change.
According to a Reuters report, “Alibaba could eventually cut more than 15% of its total workforce, or about 39,000 employees, according to one of the sources with knowledge of the company’s plans.”
The second source said: “The local consumer services segment, which includes food delivery business Ele.me and other map-based delivery services, intends to lay off up to 25% of its employees.”
Tencent also plans to cut staff in some business units, according to the report.
In a similar story, financial company Caixin reported that: “Many people at Tencent have said that the staffing redundancy is mainly concentrated in the Smart Industry, Cloud, Platforms and Content group, but the size is less than 30% claimed by the above rumors. market.”
Some employees in these companies said the layoffs were a regular occurrence. “In a company with 100,000+ people like Tencent, it’s usually a few thousand people a year weed out,” said an employee of this company.
Neither Alibaba nor Tencent responded to requests for comment.
“If fired, I would submit to my fate and do something else on earth.”
Rumors of a major layoff coming soon have been circulating on Chinese social media for more than a week. Netizens were shocked to learn that the best groups of tech workers in China are facing layoffs.
One of the sources of Sixth Tone says tech companies are moving from an era of limitless spending in the race for market share. “The War Is Over”a technology officer at ByteDance said. “Anxiety is something that happens while you are still fighting. Following the momentum, everyone is looking for a happy ending.”
Belina Tian, a senior headhunter at headhunting firm Bo Le Associates, says she’s seen significantly more resumes from Big Tech employees over the past year.
“More and more tech workers are trying to move into other industries, such as stock research,” Tian said.
After a year-long effort to enforce stricter regulations on Big Tech management by the central government, information predicting layoffs at major technology companies has been continuously appearing since the beginning. this year. However, market expectations are growing this week, with Hong Kong-listed tech stocks including Alibaba and Tencent surging more than 20% after the Chinese government meeting sent out strong signals. encouraging sign.
In February, the country’s media reported that the country’s largest ride-hailing company Didi Chuxing plans to lay off nearly 20% of its employees across the company. In a deleted article, page LatePost reports that the layoffs are a result of the ban on the app across platforms, as well as a shrinking group-buying market share. Didi’s app has been banned from being downloaded to new users for more than half a year, following a data management investigation.
Also last month, Chinese media reported that delivery platform Meituan had begun cutting the workforce in its community group purchasing division.
And in January, the The Paper reported that short video platform Kuaishou has laid off about 15% of its workforce in its e-commerce team, 25% in its internationalization team, and 30% in its algorithms team.
Neither Didi, Meituan nor Kuaishou responded to requests for comment.
ByteDance and Weibo also recently denied rumors they were planning to lay off employees.
Some people who work for the tech giants have even said they’re considering the prospect of being fired, seeing it as an opportunity to start over. Many people said they didn’t like the work culture at tech companies, but tried to stay because of the high pay.
“I’ve always felt that the internet was a fantasy, creating no real economic value. Although the high salary makes me feel weird, no one works for the social good.”an employee of Alibaba said. “As long as I don’t get laid off, I will still go to work and get paid. If fired, I would submit to my fate and do something else on earth. The feeling of floating in the air is really bad.”
Refer to Sixthtone
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