Chinese Youth in Tears: At 32, Too Old to Find Jobs! Economy Worsens, Major Tech Layoffs
Summary
TLDRThe 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
😟 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.
😰 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.
📉 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.
🚪 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.
Mindmap
Keywords
💡Middle-aged
💡Freelancer
💡Age Discrimination
💡Unemployment
💡Layoffs
💡Economic Decline
💡Social Media Platform
💡Internal Restructuring
💡E-commerce
💡Valuation
💡Workforce Reduction
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]
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