Amid slowing economic growth, Chinese technology companies are laying off employees as employers try to squeeze more work hours from dwindling staff and impose stricter demands on employees.
In a recent address to employees, the founder of JD.com, Liu Qiangdong, warned that some employees who prioritize personal life over work, and do not want to strive, are not welcome in his company.
“This choice is not wrong, but it just means you’re not my brother,” Liu Qiangdong said. “Your presence will severely damage the interests of our hardworking brothers who are fighting every day, working overtime. This is unfair to those who are still striving.”
He stated that underperforming employees who do not put in effort will not be tolerated, and will be gradually phased out through various means.
This warning is not uncommon. Currently, many Chinese tech companies are facing low growth and intensified competition, leading to layoffs and stricter requirements for remaining employees.
As economic growth stalls and stock prices fall, the market value of China’s top five listed technology companies has decreased by approximately $1.3 trillion since its peak in 2021.
Some industry insiders believe that e-commerce group Pinduoduo is a case worth emulating. Last year, Pinduoduo generated a profit of 60 billion RMB (approximately $8.263 billion), equivalent to 3 times that of Tencent and 9 times that of Alibaba per employee.
However, Pinduoduo employees work long hours. Three years ago, two employees died in an accident, with colleagues attributing it to overwork.
A former employee mentioned that during her two years at Pinduoduo, the long working hours left her with almost no time for social interaction, hobbies, or even a love life.
“After leaving the company, it felt like I was reconnecting with society,” the employee said.
To improve performance, Alibaba and Tencent have laid off tens of thousands of employees since 2021. Tencent executives admitted to targeting “low-cost talent” in their recruitment, often referring to young employees.
The euphemistic trend disguises the pain of layoffs. Companies claim to “optimize” their workforce, while employees may inform friends that they have “graduated” from the company or received a “package” from employers, implying they have been laid off with severance pay.
Layoffs are most painful for technical professionals over the age of 35. Employers view employees over 35 as having higher salaries, and due to family responsibilities, they find it difficult to endure long hours of overtime.
Jenny Chan, Associate Professor of Sociology at the Hong Kong Polytechnic University, told the Financial Times that tech companies are seeking young, unmarried talents with flexible schedules in major cities, while giving up on older and “less competitive” employees. She highlighted the serious conflict between work and family for those with family responsibilities.
Xiang Biao from the Max Planck Institute for Social Anthropology in Germany expressed, “The overall economy is no longer growing, so opportunities are not increasing.”
“What do you do? You can only squeeze more money out of yourself and employees without generating any actual profit,” he said.
Last year, recruitment platform “LaGou” and counseling service firm “Yi Psychology” surveyed 2,200 professionals in major Chinese cities. The survey revealed that 60% of respondents were anxious about their career prospects, and 44% worried about work-life balance.
For many in China, a recent statement by Baidu’s Vice President of Public Relations, Ju Jing, epitomizes the “internal competition” in the Chinese tech industry. In a video posted online, she mentioned a case where an employee traveled for 50 days, expressing concern about affecting family relationships, to which she said, “Why should I consider the employee’s family? I’m not her mother-in-law.”
She also made controversial comments like “work doesn’t take holidays” and the requirement for employees to have their phones on 24/7 and be responsive at all times.
After her videos went viral, Baidu dismissed her, stating that her views did not represent Baidu’s culture. However, many tech workers told the Financial Times that they see similar attitudes in their superiors, who prioritize work above all else.
A developer at Tencent Games stated that work often feels overwhelming. He shared, “Externally, I appear very calm. But the pressure is immense, and we are like gears constantly wearing out, eventually breaking due to lack of lubrication.”
He believes that internal competition and the lack of independent unions exacerbate these conditions.
“On weekends, if there’s no overtime work, I lock myself at home for two days without saying a word,” he said.
An employee at a Chinese TikTok company mentioned that many in the tech industry tend to have depressive tendencies, with immense pressure. She said that TikTok’s global operations mean work never ends, often attending meetings late at night. The high-demand culture at TikTok’s parent company, ByteDance, is more unbearable for her than long working hours.
A tech company founder admitted to considering ways to make his team work harder, expressing dissatisfaction when some employees leave before his working hours end.
“On one hand, I understand my employees want to clock out at 7:30 pm and go home. But on the other hand, I hope they work until 9 or 10 pm,” he said. “Our competitors are doing the same; if we don’t, how do we survive?”
(This article references related reports from the Financial Times.)