Covid Regulations, China's Crackdown On Alibaba And Others Are Taking Toll On Its Tech Workers - Read How

Author: Anusuya Lahiri | June 16, 2022 11:18am

• Chinese tech workers are facing a tough time landing a job that is coming after a significant pay cut, the Financial Times reports.
• The domestic regulatory crackdown on the Big Techs ranging from Alibaba Group Holding Limited (NYSE:BABA), Tencent Holding Ltd (OTC:TCEHY), and stringent Covid lockdown played a double whammy on the country's economic growth.
• The tech candidates are landing jobs after a 30% - 50% pay cut and a demotion, making it the most challenging job market ever.
• Many could not get to their next job due to quarantine measures to contain Covid.
• Over the past year, China's once overworked but well-paid tech workers saw a decline in office perks, job cuts, headcount freezes, and stalling or falling pay.
• Trouble at smaller, unprofitable companies gradually expanded to highly profitable groups, including Alibaba and Tencent. 
• The companies repeatedly emphasized cost control.
• China's unemployment rate for young workers aged 18 to 24 rose to 18.4% in May, FT wrote. More than 10 million graduating university students will soon join the club. 
• China's five largest publicly listed edtech groups slashed payrolls by 175,000 by the end of February.
• Lossmaking companies, amid tighter scrutiny from regulators, including iQIYI, Inc (NASDAQ:IQ), Kuaishou Technology (OTC:KUASF), and DiDi Global Inc (OTC:DIDIY), resorted to downsizing employees.
• Price Action: BABA shares traded lower by 5.38% at $102.32 on the last check Thursday.

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