Tag: Layoffs and Job Reductions

China’s Economic Outlook: Pep Talks Up Top, Gloom on the Ground

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chinas economic outlook pep talks up top gloom on the ground

To the residents and business owners of Chedun, a working-class neighborhood in the southwestern outskirts of Shanghai, the signs of an anemic economy are all around. The factories that once drew workers from around the country have moved away. Those that remain have slashed wages. Around the affordable eateries and motley shops where workers once crowded, employees eagerly latch onto anyone passing by. “No one has money now, it’s obvious,” Cherry Qian, 25, said as she sat inside the electronics store she manages, which on Sunday afternoon had seen only…

A Crisis of Confidence Is Gripping China’s Economy

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a crisis of confidence is gripping chinas economy

Earlier this year, David Yang was brimming with confidence about the prospects for his perfume factory in eastern China. After nearly three years of paralyzing Covid lockdowns, China had lifted its restrictions in late 2022. The economy seemed destined to roar back to life. Mr. Yang and his two business partners invested more than $60,000 in March to expand production capacity at the factory, expecting a wave of growth. But the new business never materialized. In fact, it’s worse. People are not spending, he said, and orders are one-third what…

China Suspends Youth Unemployment Report

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china suspends youth unemployment report

The Chinese government, facing an expected seventh consecutive monthly increase in youth unemployment, said Tuesday that it had instead suspended release of the information. The unemployment rate among 16- to 24-year-olds in urban areas hit 21.3 percent, a record, in June and has risen every month this year. It was widely forecast by economists to have climbed further last month. The decision to scrub a widely-watched report could exacerbate the concerns expressed by investors and executives who say ever tightening government control of information is making it harder to do…

Why China’s Young People Are Not Getting Married

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why chinas young people are not getting married

It has been a brutal three years for China’s young adults. Their unemployment rate is soaring amid a wave of corporate layoffs. Draconian coronavirus restrictions are over, but not the sense of uncertainty about the future they created. For many people, the recent turmoil is another reason to postpone major life decisions — contributing to a record-low marriage rate and complicating the government’s efforts to stave off a demographic crisis. Grace Zhang, a tech worker who had long been ambivalent about marriage, spent two months barricaded in the government lockdown…

Chinese Workers Confront the Curse of 35

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chinese workers confront the curse of 35

When Sean Liang turned 30, he started thinking of the Curse of 35 — the widespread belief in China that white-collar workers like him confront unavoidable job insecurity after they hit that age. In the eyes of employers, the Curse goes, they’re more expensive than new graduates and not as willing to work overtime. Mr. Liang, now 38, is a technology support professional turned personal trainer. He has been unemployed for much of the past three years, partly because of the pandemic and China’s sagging economy. But he believes the…

Cathay Pacific Struggles With Aftermath of Covid, and China Crackdown

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cathay pacific struggles with aftermath of covid and china crackdown

Few major airlines in the world were hit by the Covid pandemic as hard as Cathay Pacific, the flagship carrier of Hong Kong, or have labored so mightily to recover from it. Its business was decimated by some of the industry’s most expansive flight bans and quarantine requirements. And the pandemic wasn’t the start of Cathay’s troubles. In 2019, when Hong Kong was convulsed by pro-democracy protests, Cathay Pacific was caught in the crossfire with Beijing. Flights were canceled or delayed by airport sit-ins involving thousands of demonstrators, among them…

LinkedIn Will Cut Over 700 Jobs Worldwide and Shut Its China App

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linkedin will cut over 700 jobs worldwide and shut its china app

LinkedIn, the networking platform used by millions of employees and companies, said on Monday it will pare down its operations in China, capping a multiyear pullback that exemplified the challenges of running a foreign business in China. The company, owned by Microsoft, said it will lay off 716 employees worldwide, including teams dedicated to engineering and marketing in China, because of slumping demand. It did not say how many of those layoffs will be in China. LinkedIn will also shut its China job posting app, a bare-bones version of its…

China’s Youths, Stung by Years of Covid Rules, Fear Grim Job Future

Chin@Strategy
chinas youths stung by years of covid rules fear grim job future

Mandy Liu, a 21-year-old university student in Beijing, believes that anyone who has lived in China during the pandemic can see that the country’s future is looking increasingly uncertain. Covid restrictions were stifling, and employment opportunities were grim. She is set to graduate next year with a degree in tourism management and has submitted more than 80 applications for jobs. She has not received a single offer. Many young people had followed what the Chinese Communist Party told them to do, only to be left disillusioned, Ms. Liu said. “What…

China’s Covid Lockdowns Leave Millions Out of Work

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After over a month in lockdown, Zeng Jialin could finally return to the Shanghai auto parts factory where he had worked. He was about to be released from a quarantine facility, having recovered from Covid, and was desperate to make up for the many days of wages he had missed. But on Tuesday, the day he was supposed to be released, someone in the crowded isolation facility tested positive again. Mr. Zeng, 48, was ordered to wait 14 more days. “I have three kids, in college, middle school and elementary…

As Beijing Takes Control, Chinese Tech Companies Lose Jobs and Hope

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as beijing takes control chinese tech companies lose jobs and hope scaled

The video platform that laid off Mr. Zhao, iQiyi, had an abysmal quarter, losing about $268 million. Its share prices fell by 85 percent from its high in 2021, reflecting investors’ concerns that the company, once aspiring to be China’s Netflix, will be short of shows that can attract more subscribers and advertisers. “The biggest problem for our industry is severe shortage of content supply,” iQiyi’s chief executive, Gong Yu, told analysts in November. He blamed, in part, censors’ slow approval. IQiyi did not respond to requests for comment. (Mr.…