Chinese Youth in Tears: At 32, Too Old to Find Jobs! Economy Worsens, Major Tech Layoffs

Summary

The video script highlights the struggles of middle-aged individuals facing unemployment and financial crises amid layoffs in China. It discusses the impact of age discrimination in hiring practices, the challenges of maintaining a livelihood with reduced job opportunities, and the broader economic implications of widespread layoffs across major industries like real estate, internet, automotive, and finance. The script also touches on the specific case of Xiaohongshu's restructuring and layoffs, reflecting the pressures of a competitive market and the need for companies to adapt.

Takeaways

• 😔 Middle-aged married men are facing significant challenges in finding jobs and supporting their families due to high expenses and limited job opportunities.
• 💼 Freelancing has become a necessity for many who cannot find regular jobs, leading to lower income and financial instability.
• 💰 The cost of living, including child education, mortgage, and other household expenses, is increasing, putting immense pressure on families.
• 🏢 Age discrimination in the job market is prevalent, with employers preferring younger workers who demand lower wages and are perceived as easier to manage.
• 🏦 Many companies are undergoing layoffs, affecting a wide range of industries including internet, real estate, automotive, and finance, due to economic downturns and restructuring.
• 📈 Companies like Xiao Hong Shu are restructuring and laying off employees, targeting those with lower performance ratings, reflecting a broader trend in the tech industry.
• 🚗 The automotive sector is also seeing layoffs, with companies like GAC Honda and Polestar Technology reducing their workforce in response to market challenges.
• 💡 The high turnover rate at companies like Xiao Hong Shu is attributed to frequent organizational restructuring and shifting strategic directions, leading to employee dissatisfaction and burnout.
• 🌐 The internet industry is facing a slowdown in user growth, leading platforms like Xiao Hong Shu to seek new growth avenues and improve team efficiency.
• 🏢 Layoffs and restructuring are not only affecting individual employees but also have broader economic and psychological impacts on society as a whole.

Q & A

What is the main problem faced by the middle-aged married man in the script?

The main problem faced by the middle-aged married man is the difficulty in finding a job that can support his family, due to age discrimination and a preference for younger workers in the job market.

What are the financial challenges faced by the couple mentioned in the script?

The couple is struggling with high household expenses, including the cost of their child's education, mortgage, and summer daycare, which are increasing every month. They also have limited savings and a one-time compensation that will quickly deplete.

Why is the man considering starting his own business?

The man is considering starting his own business because he is unable to find a regular job due to age discrimination, and the available jobs offer significantly lower wages than his previous position.

What is the situation with the AI project leader who recently lost his job?

The AI project leader lost his job after working at the company for five years. He is now facing unemployment along with other colleagues, and is concerned about his monthly fixed expenses without a steady income.

What is the reason behind the layoffs at Xiao Hong Shu?

Xiao Hong Shu is undergoing restructuring and layoffs, primarily targeting employees with performance ratings below 3.5. The new senior management is dissatisfied with the current human resource efficiency ratio and is optimizing labor costs through layoffs.

What are the age requirements for new hires at Xiao Hong Shu?

Xiao Hong Shu has strict age requirements for new hires. The original age limit was set at 35 years old, but now even candidates aged 32 may find it difficult to secure a position.

What is the impact of layoffs on the individuals affected and society?

Layoffs can bring significant economic and psychological impacts on the individuals affected, such as financial stress and job insecurity, and can also affect society as a whole by increasing unemployment rates and potentially reducing consumer spending.

What are the challenges faced by Xiao Hong Shu in terms of business operations?

Xiao Hong Shu is facing challenges such as a decline in valuation, difficulties in e-commerce and community operations, and the need to find new growth avenues to remain competitive in the social e-commerce sector.

What is the situation with the layoffs in the Chinese real estate sector?

Major real estate companies in China, including the top five by market value, are experiencing layoffs. For example, Poly Real Estate laid off 16.3% of its workforce, and Greenland Holdings reduced its staff by 14.5%.

What is the impact of the layoffs on the internet industry in China?

The internet industry, traditionally a major employer, has also been cutting costs. Companies like Alibaba, Tencent, and ByteDance have laid off a significant number of employees, reflecting the industry's adjustments in response to economic conditions.

What are the reasons behind the layoffs in the automotive sector?

The automotive sector is undergoing large-scale layoffs due to factors such as declining sales, increased market competition, and cost pressures. Companies like GAC Honda and Polestar are conducting layoffs to cope with these challenges.

Outlines

00:00

😟 Struggles of a Middle-Aged Family Man

A middle-aged married man describes his struggles in finding a stable job to support his family. Despite both he and his wife working, their expenses, including daycare, education, and a mortgage, are overwhelming. He explains the difficulty in securing a job due to age discrimination in the job market, where employers prefer younger, lower-paid workers. Facing financial instability, he considers starting his own business.

05:01

😰 Sudden Unemployment and Financial Anxiety

A woman shares her experience of unexpectedly losing her job after five years as an AI project leader. She details her anxiety about ongoing expenses such as mortgage, car loans, utilities, and credit card payments, without a steady income. The layoffs are a result of economic decline and company restructuring, affecting many of her colleagues as well. The uncertain job market exacerbates her stress and financial worries.

10:03

📉 Organizational Changes and Layoffs at Xiao Hongshu

Xiao Hongshu, a major Chinese social media platform, is undergoing significant layoffs due to restructuring and dissatisfaction with employee performance. The company aims to optimize labor costs and improve operational efficiency. Employees face stringent age requirements, and recent layoffs target a significant portion of the workforce. The platform is also struggling with its e-commerce ventures and declining user engagement.

15:04

🚪 Closure of E-Commerce Platforms and High Turnover

Xiao Hongshu has closed its self-operated e-commerce platforms, Welfare Society and Little Oasis, as part of its business adjustments. The company, known for high turnover rates, frequently undergoes organizational changes. Despite offering competitive salaries, many employees leave due to heavy workloads and constant strategic shifts. The layoffs and restructuring are part of Xiao Hongshu's efforts to remain competitive in a challenging market.

📉 Declining Performance and Workforce Reductions

Polestar Technology and other major Chinese companies are facing significant layoffs and financial losses. Polestar's global sales and revenue have dropped, leading to production shifts and employee reductions. GAC Honda, facing declining sales, has also initiated large-scale layoffs. These layoffs reflect broader economic challenges and market competition, as companies seek to reduce costs and improve efficiency.

⚙️ Economic Adjustments Across Industries

Various industries in China, including real estate, internet, automotive, and financial sectors, are experiencing widespread layoffs and salary cuts. Companies are adjusting to economic conditions by reducing labor costs and improving efficiency. While these measures help companies cope with external and internal challenges, they also bring significant economic and psychological impacts on affected individuals and society as a whole.

Keywords

💡Middle-aged

The term 'middle-aged' typically refers to the period in a person's life that is between young adulthood and old age, often associated with the age range of 40 to 65. In the video's context, it highlights the challenges faced by individuals in this age group, particularly in the job market where they may experience age discrimination and difficulty finding employment, as illustrated by the man struggling to support his family.

💡Freelancer

A 'freelancer' is an individual who is self-employed and is not committed to a particular company or job for a long period. The video discusses the struggles of a freelancer who previously had a stable job but now faces financial insecurity due to the lack of regular employment and lower pay for the same work as a construction engineer.

💡Age Discrimination

Age discrimination refers to prejudice against individuals based on their age. The video script mentions that many employers prefer younger workers who are perceived as easier to manage and willing to accept lower wages, which is a form of age discrimination that affects middle-aged individuals seeking employment.

💡Unemployment

Unemployment is the state of being without a job while actively seeking work. The video script describes several cases of individuals who have recently become unemployed, including a man who lost his job as an AI project leader and is now facing the economic and emotional challenges that come with unemployment.

💡Layoffs

Layoffs refer to the termination of employment for a group of workers by a company, usually as a cost-cutting measure. The video discusses widespread layoffs in various industries in China, including the social media platform Xiaohongshu, which is restructuring and laying off employees, primarily those with lower performance ratings.

💡Economic Decline

Economic decline refers to a reduction in economic activity over time, often characterized by falling GDP, increased unemployment, and reduced consumer spending. The video script implies that China's economy is facing a downturn, which is contributing to the wave of layoffs and job insecurities mentioned throughout the transcript.

💡Social Media Platform

A social media platform is an online service or site that enables users to create and share content or participate in social networking. The video script specifically mentions Xiaohongshu, a Chinese social media platform that is undergoing restructuring and layoffs, indicating challenges in the social media industry.

💡Internal Restructuring

Internal restructuring is the process of reorganizing a company's internal structure to improve efficiency, reduce costs, or respond to changes in the business environment. The video discusses Xiaohongshu's internal restructuring, which includes layoffs and changes in management, as a response to business challenges.

💡E-commerce

E-commerce refers to the buying and selling of goods or services using the internet, as well as the transfer of money and data to execute these transactions. The video script mentions Xiaohongshu's efforts to improve its revenue structure, which has heavily relied on advertising, and its disappointing results in expanding into live streaming e-commerce.

💡Valuation

Valuation is the assessment of an asset or company's worth. The video script notes that Xiaohongshu's valuation has declined, which could be linked to difficulties in e-commerce and community operations, reflecting the impact of business performance on a company's market value.

💡Workforce Reduction

Workforce reduction is a decrease in the number of employees in a company, often due to layoffs or downsizing. The video script reports that major industries in China are experiencing workforce reductions, with leading companies in real estate, internet, automotive, and financial sectors reducing staff or cutting salaries to control costs.

Highlights

A middle-aged married man is struggling to find a job and support his family due to age discrimination in the job market.

The man's family expenses, including child education, mortgage, and summer daycare, are overwhelming their savings and compensation of 100,000 Yen.

Freelancing is becoming a necessity as regular jobs with lower wages are increasingly offered to older workers.

Employers prefer younger workers who demand lower wages and are easier to manage, leading to frustration among experienced workers.

Starting one's own business is seen as a potential solution to unemployment and wage disparity.

A woman recently lost her job as an AI project leader after five years, highlighting the precariousness of employment in 2024.

Layoffs are widespread, affecting both male and female employees across various age groups and industries.

Fixed monthly expenses like mortgage, car loans, utilities, and credit card payments are causing anxiety for the unemployed.

Xiao hongu, a Chinese social media platform, is undergoing restructuring and layoffs, targeting employees with lower performance ratings.

Xiao hongu's new management is dissatisfied with the current human resource efficiency ratio, leading to labor cost optimization through layoffs.

Age requirements for new hires at Xiao hongu are strict, with even candidates aged 32 finding it difficult to secure a position.

Netizens comment on the internal conflicts within companies and the preference for younger, more malleable employees.

Analysts believe that Xiao hongu's organizational adjustments are driven by commercial challenges and a need to improve revenue structure.

Xiao hongu's self-operated e-commerce platforms have announced closures, reflecting the company's struggle with business adjustments.

High turnover rates at Xiao hongu are attributed to frequent organizational restructuring and shifting strategic directions.

Xiao hongu is known for competitive salaries and stock options, attracting talent despite its challenges.

The internet industry is facing a slowdown in user growth, adding pressure to platforms like Xiao hongu to find new growth avenues.

Major industries in China, including internet, real estate, automotive, and finance, are experiencing widespread layoffs and cost-cutting measures.

Layoffs are a strategy for companies to cope with external and internal challenges, but they bring significant impacts on individuals and society.

Transcripts

as a middle-aged married man with a

career I've encountered a significant

problem my family is facing a crisis

it's becoming increasingly difficult for

me to find a job and I might not be able

to support my wife and children anymore

this is not an exaggeration just this

morning my wife and I did the math both

of us are working I'm a freelancer and

she has a full-time job but we no want

to look after our child who has to go to

a summer daycare the expenses are over

Welling every month our household

expenses the cost of our child's

education and our mortgage are all very

high we have some savings and I received

a compensation of 100,000 Yen but this

money will run out quickly I'm

freelancing now because I can't find a

regular job my previous job used to pay

10,000 un a month which is considered

low but now the same position offers

only 3,000 to 5,000 un as a construction

engineer many employers say they prefer

young workers

because they are easier to manage and

demand lower wages in the eyes of these

employers salary is more important than

experience this makes me feel very

frustrated so now my only option is to

start my own business this man

highlights the numerous challenges faced

by middle-aged marry men in today's

society he is struggling to find a job

and support his family and he feels the

adverse effects of age discrimination in

the job market many employers prefer

younger workers who are seen as easier

to manage and cheaper to to employ this

situation has left him feeling very

frustrated and

confused I might not be able to survive

because I just lost my job I recently

completed my resignation procedures

after working at the company for 5 years

as the AI project leader today is my

last day at work everyone says that 2024

will be tough with companies laying off

employees and I couldn't escape

unemployment either this morning I drove

to work as usual and ordered lunch as

usual but in the afternoon my boss

suddenly called him meeting and

announced that today would be our last

day everyone was discussing their next

steps two of my male colleagues who are

in their 40s are also struggling to find

new jobs I'm on the verge of turning 35

and another female colleague just got

married and hasn't had children yet it

means everyone is finding it tough to

secure new jobs I immediately thought of

my monthly fixed expenses mortgage car

loans utilities food credit card

payments my monthly expenses are around

25,000 Yen not including unexpected

medical bills living cost money every

day and without a source of income I

feel very anxious this woman is facing

immense pressure and despair after

losing her job working for 5 years and

leading important projects losing her

job was a sudden blow the constant

expenses including mortgage car loans

utilities and credit card payments make

her extremely anxious without a steady

income as China's economy continues to

decline the wave of layoffs is spreading

recently news of layoffs at Chinese

social media platform Xiao hongu has

garnered widespread attention with

several employees confirming the news

reports suggests that Xiao hongu is

undergoing restructuring and layoffs

primarily targeting employees with

performance ratings below 3.5 which

constitutes about 30% of the workforce

according to Phoenix technology Shia

hongshu employees revealed that the

layoffs are currently in the stage of

locking recruitment quotas HC and the

company is conducting internal Personnel

assessments however no official notice

has been released yet and employees are

awaiting related emails the reason

behind these layoffs is that shiao Hong

shu's new Senior Management is

dissatisfied with the current human

resource efficiency ratio according to

internal employees the new management

believes that xiaon shu's efficiency

ratio is only half of that of Chinese

e-commerce platform pinu du therefore

they decided to optimize labor costs

through

layoffs recruitment industry insiders

revealed that Xiao hongshu has strict

age requirements for new hires the the

original age limit was set at 35 years

old but now even candidates aged 32 may

find it difficult to secure a position

for xia hongshu if this adjustment is

true it can be considered an internal

earthquake in response some netizens

commented such a company is caught in

internal conflicts and won't last long

another nzen said all companies are the

same I think the high urbanization rate

is the main issue everyone is flocking

to cities which don't have enough job

opportunities employers will definitely

prefer younger candidates another

opinion was people over 32 are mostly

Married with Children so they can't

focus entirely on their careers they

won't buy into empty promises so

employers don't want them some netizens

joked so no one should get married with

no one to succeed them companies won't

need to hire anyone since there will be

no one left analysts believe that the

recent series of organizational

adjustments at Xiao hongu are driven by

its commercial challenges and

fluctuating valuation xiaon shu's

valuation decline could be linked to

difficulties in e-commerce and Community

operations on one hand Shia hongu hopes

to elevate user engagement metrics on

the other hand Shia hongshu aims to

improve its Revenue structure which has

heavily relied on Advertising it hopes

to expand into live streaming e-commerce

however the results have been

disappointing besides the rumored

structural adjustments the 21st century

business Herald reported that xiaohong

shu's self-operated e-commerce platforms

Welfare Society and little Oasis

announced their closures last year in

September 2023 Xiao Hong shu's Welfare

Society published a farewell letter to

users titled it's goodbye but also a

beginning signifying the complete

shutdown of xia Hong shu's self-operated

e-commerce platform Welfare Society was

established at the end of

2014 additionally shiao Hong shu's

e-commerce platform little Oasis also

released a farewell letter stating that

due to business adjustments it

officially closed on October October

31st

2023 xia hongu launched in 2013 By Shing

Ying Information Technology Shang High

Company Limited is a lifestyle sharing

platform featuring content on consumer

experiences and lifestyle tips over time

it evolved into a social and online

shopping platform in recent years due to

the need for commercial development

seongu has undergone multiple internal

management and Personnel adjustments

with rumors of layoffs frequently

emerging in April 20 22 x hongu issued a

statement on a rumor debunking platform

explaining that starting in March the

company began its annual performance

review and conducted normal Personnel

changes based on these evaluations

approximately 200 employees around 9% of

total staff were let go due to

unsatisfactory performance which did not

reach the rumored scale of layoffs

previously net e technology reported on

the high turnover rate at Xiao hongshu a

former employee noted that the average

tenure of employees is short with many

choosing to leave within 3 to 4 months

of joining another departing employee

mentioned that the average tenure is

only about 6 months and those who have

been there for more than 2 years are

considered veterans this High turnover

rate is attributed to frequent

organizational restructuring and

shifting strategic directions a former

employee described working at xia hongu

as follows colleagues are friendly and

helpful but the workload is heavy and

it's very tiring it's like a group of

people studying for exams together

this former employee added most

employees are under significant pressure

the atmosphere is somewhat suffocating

voluntary resignations are often due to

overtime and the bi-weekly schedule but

mainly because of the constant changes

in business strategies and difficult

interde departmental

communication despite these changes Xiao

hongu is known in the recruitment

industry for its competitive salaries

earning the nickname little bite dance

at level R7 employees can receive

Company stock options based s Shia Hong

shu's 2021 valuation of 20 billion total

compensation including stock options can

easily exceed 1 million yen annually

which is one to two times the market

average in the past year xia hongu

aggressively recruited from bite dance

tawau and other platforms however these

new employees often struggled to adapt

to xia Hong shu's content-driven

approach an employee revealed that the

commercialization team had a high

turnover rate with at least 10 R six

level or higher percent leaving in

2023 notably the head of the

commercialization channel Department who

also managed advertising service

providers also recently left before the

layoff news broke xiaon shu's e-commerce

operations Department completed an

organizational restructuring at the end

of June the e-commerce operations team

transitioned from being managed by a

single person to a multi-person team

with separate groups handling industry

Merchants buyers and key accounts this

restructuring followed the merger of the

buyer operations and Merchant operations

teams within xiaon shu's e-commerce

division previously independent these

two teams were merged under the former

head of live streaming operations yinu

however within less than a year of this

merger xia hongu again adjusted the

structure of the e-commerce operations

Department an industry Insider expressed

to L Jinger news it's quite shocking two

months ago xia hongu had just merged the

buyer operations and Merchant operations

into the e-commerce operations

Department with yinu in charge this

latest adjustment means a reduction in

yin's management scope and 2 months

isn't enough to achieve significant

results this round of organizational

adjustments occurred after the June 18th

shopping Festival to which xia hongu had

devoted considerable resources and

expectations during this year's June

18th shopping Festival Shia hongshu

introduced a promotion of 50 unen off

every 300 Yen spent across stores with

additional coupon stacking a Ceramics

good seller previously told linger news

that the subsidies from Xiao hongu this

year were comparable to those from tawau

he believes that the current layoffs are

related to the company's underwhelming

commercial performance he stated I think

the main issue is that they didn't meet

their expected targets another shiau

employee mentioned that the company is

implementing measures to improve team

efficiency the employee said for example

monitoring attendance xiaon shu's

official working hours are from 10:00

a.m. to 7:00 p.m. but employees must be

within the office gates for at least 8

hours if their attendance ranks low HR

will have a conversation with them as

the internet industry rapidly develops

major platforms are competing for users

and market share causing the flow of new

users to gradually slow SE hongu a

leader in the social e-commerce sector

is also facing the challenge of slower

user growth to remain competitive needs

to find New Growth Avenues which adds

pressure to its operations data shows

that has completed six rounds of

financing accumulating over 6.3 billion

yen investors include 10-cent investment

TASC Alibaba ggv Capital 10

Genesis capital and tn2 capital the last

round of financing at the end of 2021

valued the company at 20 billion US

however in this year's hurin Global

unicorn index 2024 the company's

valuation has dropped to 137 million a

special researcher at the e-commerce

Research Center of net EAS and founder

of biland Consulting Jang sh said that

the financing represents the substantial

value xia hongu still holds including

user retention its influence on

e-commerce navigation and advertising

value however competition in the social

e-commerce sector is intensifying with

both established players like xia hong

shu and numerous new platforms entering

the market these platforms are market

share through innovative business models

and marketing strategies maintaining a

leading position in this competitive

environment is undoubtedly challenging

for Xiao hongshu it's not just xia hongu

that is laying off employees many

companies across China are conducting

large scale layoffs according to a South

China Morning Post report on July 9th

major industries in China are

experiencing widespread layoffs with

nearly all leading companies in these

industries reducing staff and cutting

salaries the South China Morning Post

reviewed the annual reports of 23

Chinese companies and found that 14 of

them reduced their Workforce in 20123

While others cut employee related

expenses to control costs these

companies span real estate internet

automotive and financial Industries

including the top five by market value

and three notable electric vehicle

manufacturers in the Chinese real estate

sector the top five companies by market

value all saw a reduction in staff in

2023 ply real estate the largest

developer by market value in China laid

off 16.3% of its Workforce equating to

11,000 people Shanghai based Greenland

Holdings also reduced its staff by 14.5%

bringing its Workforce down to nearly

60,000 by the end of 2023 similarly the

internet industry traditionally a major

employer has also been cutting costs

Alibaba laid off 12.8% of its employees

in the 2023 fiscal year about 20,000

people compared to a 7% reduction in its

previous fiscal year according to Ali

Baba's annual report last year marked

the highest number of layoffs in a

decade in the past year 10 cents

Workforce decreased by 2.8% which is

about 3,000 employees and layoffs have

continued the first quarter of 2023

another 630 employees were laid off

earlier this year bite dance xiaomi

jd.com quow technology DD D tring Billy

Billy and wble all announced layoff

plans in the financial industry most

leading companies are state-owned

therefore Brokers and funds have mostly

reduced salaries and benefits rather

than conducting large-scale layoffs

according to a report by Auto home on

July 9th rumors are circulating that by

the end of September postar technology

will lay off about 30% of its Workforce

shut down its chungu Factory and

transfer production to chong ching

Factory and giles's Factory the layoffs

will mainly affect employees involved in

production and Supply at the chungu

factory additionally many employees at

postar Shanghai headquarters are either

resigning or staying with the company

but those who remain have to transfer

their social insurance and other

benefits to Ning on July 9th leninger

news learned from sources close to

postar that the layoff rumors are

related to the headquarters relocation

according to the source there's no 30%

layoff it's just that the headquarters

is moving and some employees don't want

to relocate so they choose to leave the

company will negotiate compensation for

employees unwilling to move to nangjing

Media reports also indicate that postar

Chinese headquarters is moving to

nangjing and the chungu factory has been

shut down with production transferred to

the Chongqing Factory and giles's

Factory this has led to layoffs of many

employees responsible for production and

Supply Phoenix Finance disclosed that

postar might face delisting from the

stock market on July 2nd polstar

released its unaudited preliminary

financial and operational results for

the first quarter of 2024 in q1 poar

global sales were 7,000 221 units a

year-on-year decrease of 40% revenue for

the quarter was $

345.8 million down 36% year on-year and

net loss increased from $38 million us

to $26 million us the gross profit

margin dropped from 4.3% to negative

88.9% public information shows that

postar technology is a joint venture

between Shinji Mau group and postar

automotive postar automotive was a

established in 2017 as a joint venture

between Volvo car group and Jang G

Holding Group and it currently has two

R&D centers and three production bases

worldwide according to a report by

financial news on July 9th GAC Honda a

joint venture between Honda and China's

GAC group experienced its first

large-scale layoffs in its 25-year

history at the end of last year

affecting about 900 contract workers in

2024 GAC Honda's layoff actions

escalated with a strategy focusing on

voluntary res designations up to 19% of

employees accepted the generous n plus2

+ 1.8 compensation package resulting in

more than 2300 voluntary departures this

move reflects the reality of Honda's

declining sales in the Chinese market

for three consecutive years in May this

year Honda sales and production in China

fell by

41.3% and 53.7% respectively compared to

the same period last year a significant

drop from the peak sales year of 2020

analysts indicate that multiple

Industries including the internet real

estate and Automotive sectors are

undergoing large-scale layoffs

reflecting the industry's adjustments in

response to economic conditions they

believe that with China's economic

growth slowing down companies face

increased Market competition and cost

pressures layoffs can reduce labor costs

and improve overall efficiency and

profitability however while layoffs are

a strategy for companies to cope with

external and internal challenges they

often bring significant economic and

psychological impacts on the individuals

affected and society as a whole

[Music]