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Wave of layoffs among technology workers in China


02 May 2024  

Time taken to read : 7 Minute


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China is entering one of the most challenging employment environments in recent generations.

Young college graduates are facing accelerated depreciation of their academic qualifications and are struggling tofind jobs, while those in their 30s who are already employed worry about potential layoffs.

Being 35 years old has now become a curse for employment, particularly within the tech industry.

When a 35 years old colleague was dismissed, a 34-year-old software engineer confronted the harsh reality of job security for the first time.

He expressed his apprehensions, stating, ‘The dismissal left me in shock and filled with anxiety. I saw our circumstances as strikingly parallel and feared that I might be the next in line,’ he confided to the Financial Times”.

Sure enough just a few months before his 35th birthday, the developer was also laid off, becoming another victim of company’s restructuring.

Five current and former employees, with direct knowledge of the restructuring plan told the financial times that the company is eliminating junior employees around the age of 35.

Programmer was informed that his dismissal was part of the company’s overall layoffplan. The company declined to comment.

Driven by the economic slowdown and regulatory concerns the technology industry is witnessing a wave of layoffs.

Software Company’s latest financial report reveals that its stock price has plummeted by 88% since its listing in Hong Kong in 2021 and the company reduced its overall headcount by 16% between December 2021 and June 2023.

“The 35-year-old curse” is a significant source of anxiety for employees in the technology industry a survey conducted last year by the recruitment platform ‘lego.com.’ It found that 87% of programmers were seriously worried about being fired or unable to find a new job after the age of 35.

Some netizens have remarked that even supermarkets are reluctant to hire individuals over 30 suggesting that anyone aged 30 or above will be automatically disqualified.

“Once unemployed it is challenging for individuals over 35 to secure another job, a 38-year-old programmer who was recently lost his job stated that finding a new job was difficult.

“The job market is very tough even worse than last year especially for experienced engineers like myself”, he remarked according to Reuters XU Tian, an economics professor at the China Europe International Business School in Shanghai commented, “we are in a recession if you talk to 10 people seven of them will say we had a bad year”.

The ’35-year-old’s curse’ initially emerged on social media to describerumours of older employees being terminated by large technology companies.

However, this phenomenon has now become increasingly common with many online job recruitments, explicitly stating that applicants must not exceed this age.

Companies generally believe that older employees are less willing to tolerate long working hours due to family responsibilities, the crackdown by the Chinese government has led to layoffs in the technology industry over the past few months particularly affecting relatively older employees.

In November 2020 the Chinese Communist Party initiated a campaign to rein in internet Giants beginning with the cancellation of Ant group’s initial public offering IPO.

Over the following 18 months, the Chinese government extended its regulatory crackdown to industries spanning technology, finance gaming, entertainment and education. Private Enterprises are the largest source of employment in China contributing over 80% of job opportunities.

Companies facing regulatory pressure have implemented large-scale layoffs exacerbating the challenge for young Chinese individuals to secure employment.

The situation calls for urgent attention and action from Communist Party of China to address this growing concern but they have no clue about how to solve the problem of unemployment among Chinese youths.

Doug Guthrie, executive director of the China Initiatives at Arizona State University’s Thunderbird School of Global Management once told CNN that the job losses in China’s technology industry were self-inflicted by the CCP; what is even more concerning is that amidst China’s ongoing economic downturn the age requirement for recruitment across various industries is becoming increasingly younger.

Recently a supermarket in China posted a jobadvertisement seeking cashiers aged between 18 to 30 sparking millions of views and tens of thousands of comments on Sina Weibo.

Some netizens have remarked that even supermarkets are reluctant to hire individuals over 30 suggesting that anyone aged 30 or above will be automatically disqualified.

“Although I haven’t personally experienced this yet I feel disheartened seeing it many job postings also specify an age limit of 35. Are they trying to push people out of the workforce”? – a Chinese wrote on Weibo.

Another netizen commented, “What have I done to deserve being sidelined at 35do I no longer belong in this Society?” another weibo user aged 33 shared that they have been searching for employment for 3 years. These poignant posts all reflect the harsh reality in Chinese Society that finding employment is a daunting challenge.

The “35-year-old curse” in China’s tech industry, fuelled by economic slowdowns and regulatory pressures, is a stark reminder of the evolving employment landscape. The anxiety of job security looms large, especially for those nearing or over 35.

As companies prioritize younger recruits, the struggle intensifies for experienced professionals seeking employment. This trend underscores the need for systemic changes to ensure fair opportunities for all, irrespective of age.

The situation calls for urgent attention and action from Communist Party of China to address this growing concern but they have no clue about how to solve the problem of unemployment among Chinese youths.

Publish Date : 02 May 2024 12:30 PM

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