Kovid lockdown sees new wave of job cuts in China’s big tech due to injury to the economy

A new wave of job cuts has hit China’s largest technology companies as regulatory pressures and cowardly lockdowns disrupt their business.

It is unknown at this time what he will do after leaving the post. Interview by source South China Morning Post.

Video gaming and social media giant Tencent Holdings is cutting about 100 people from its sports channel, Thepaper.cn Friday report. The Chinese news website quoted an insider of the Shenzhen-based company as saying that many departments were reducing head counts.

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According to a source, the level of job cuts varies from team to team depending on their profitability and the nature of the business. Post.

Businesses with heavy losses, including cloud computing and video, suffered the most at Tencent, with at least two layoffs since April, another source said.

Occasionally, a whole team of more than 20 employees was laid off, according to a third source. All sources declined to be named because they were not authorized to speak to the media.

Tencent did not respond to requests for comment, but founder and CEO Pony Ma Huateng said in an earnings call with analysts on Wednesday that the company would adjust certain non-core businesses after reporting stagnant revenue growth in the first quarter.

Tencent President Martin Lau Chi-ping said in March that the company would exit or flow into some nonco business to control headcount, but the total number of employees by the end of this year would still be higher than in 2021.

E-commerce giant Alibaba Group Holdings, the newspaper’s owner, is reportedly retiring. Instead of cutting staff in one-on-one practice, the company is cutting staff by cutting jobs several times, which will affect units including DingTalk, Alibaba Cloud, Taobao and Taobao Deals, according to a. Economy Weekly Report citing company sources who declined to be named.

Alibaba did not respond to a request for comment.

The mascot for Alibaba’s Taobao e-commerce platform is near the company’s headquarters in Hangzhou, China. Photo: Bloomberg alt = Mascot for Alibaba’s Taobao e-commerce platform near the company’s headquarters in Hangzhou, China. Photo: Bloomberg>

Chinese tech companies are generally reluctant to formally acknowledge job cuts, as the country’s labor law requires the advice of a trade union and the intervention of labor authorities if a worker reduction involves more than 20 jobs.

There have been deeper cuts in China’s technical sector, driven by regulatory uncertainty and a tight-knit control system, which has hurt Big Tech earnings.

In April, the unemployment rate for people aged 16 to 24 in China was 18.2 percent, compared to 13.9 percent in Europe and 8.6 percent in the United States, according to Chinese media. CaixinAt a seminar last week, quoting Professor Lu Feng of Peking University’s National School of Development.

The youth unemployment rate in China has been rising since the middle of last year, while the unemployment rate in the United States and Europe has been steadily declining, according to Lure’s research.

The youth unemployment rate in China has been rising since last October, while the unemployment rate in the US and Europe has been steadily declining since the middle of last year, according to Lu’s study.

Some Chinese technology companies have said they are coordinating to improve their business.

Xiaohongshu, a Chinese social e-commerce platform like Instagram, said last month that it was removing 9 percent of its employees because of subperperformance.

Chen Rui, chief executive of video-streaming platform Bilibili, said in March that the company’s goal was to “make the most of every dollar we spend”. In the same month, executives at Qiaishou, China’s second most popular short video platform, said in a conference call that the firm wanted to break even this year.

In order to give a lift to the technology sector, the Chinese government seems to be easing its scrutiny over the industry. On Tuesday, the Chinese People’s Political Consultative Conference, the country’s top political advisory body, held a special symposium with Big Tech leaders to promote the digital economy, sending a signal of support for the industry going through an 18-month crackdown.

The article was originally published in the South China Morning Post (SCMP), the most authoritative voice reporting in China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit SCMP’s Facebook Twitter Pages Copyright 2022 South China Morning Post Publishers Ltd. All rights reserved.

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