- 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.
