China’s Tech Giants Spook a Generation of Workers With Job Cuts

For years, positions at China's leading technology companies were highly coveted among ambitious young professionals, representing a pathway to wealth and social mobility. However, a significant wave of layoffs and structural changes has disrupted this established route, resulting in widespread job insecurity and prompting many to seek stable employment in the state sector instead of private tech firms[para. 1].

Beginning in recent years, major Chinese internet companies have embarked on aggressive staff reductions as part of broad "cost reduction and efficiency" initiatives. This marks a dramatic reversal from an era of rapid industry expansion, with workforce shifts undermining the previous dominance and perceived stability of the sector[para. 2].

Financial disclosures from top technology corporations starkly demonstrate this downtrend. Alibaba Group's full-time employee count dropped by more than 50% over three years, from 254,941 in March 2022 to 124,320 by March 2025, largely due to the divestiture of its hypermarket chain, Gaoxin Retail, though some new hiring has partially offset the decrease. Baidu also reported a 21.1% reduction, from its workforce peak in 2021 to 35,900 by late 2024[para. 4]. Tencent Holdings' staff numbers, while somewhat more stable, declined from 108,436 in 2022 to 105,417 in 2023, recovering slightly to 110,558 in 2024[para. 5].

These layoffs have disproportionately affected mid-career and senior professionals, especially those above 35 years old, who often face "career downgrades" or significant challenges trying to re-enter the job market. For example, one 32-year-old tech worker shared that several verbal job offers were withdrawn, ostensibly due to hiring freezes, underscoring the instability and unpredictability of the labor market[para. 6][para. 7]. Another worker recounted applying to hundreds of positions after being laid off, but rarely receiving responses, and noted an increasing preference within companies for younger employees, as older staff are replaced by recent graduates[para. 8].

The industry’s open push for youth is well-recognized, with leaders such as Alibaba's CEO calling explicitly for a younger managerial cohort, targeting workers born after 1985 and 1990 to assume most management roles within four years[para. 10]. Older employees, some lauded for their past performance, report being laid off as firms pursue lower average ages within teams. Those affected often face not just job loss but also challenges regarding severance and appeals to labor authorities, with broader social questions raised about the support for experienced mid-life professionals[para. 11][para. 12].

Age discrimination is prevalent; firms frequently use the “35-year-old threshold” to limit promotions or implement dismissals, according to labor economists[para. 13]. This volatility is changing the career preferences of young Chinese: students now increasingly favor civil service or employment at state-owned enterprises for stability[para. 14]. Personal accounts reveal a dramatic shift—those once committed to tech careers are pivoting to state roles after experiencing or observing layoffs[para. 15][para. 16].

Surveys back up this shift: a 2024 Zhaopin report shows 73.1% of new graduates now aspire to government or state-sector jobs, with only 12.5% favoring private companies, down from 25.1% in 2020[para. 17]. For those who have undergone layoffs, the experience has reshaped their outlook on career and security, with some taking up gig work and preparing for further instability[para. 18][para. 19]. All employee names in the report are pseudonyms[para. 20].