Tech lay-offs in China extend into year-end as Bilibili and Weibo cut headcount in worsening economy
- Video streaming platform Bilibili and Twitter-like microblogging service Weibo have cut hundreds of people from their workforce
- Across the country, joblessness is especially acute among youth, for whom the tech sector is one of the biggest employers
Job losses in China’s technology sector show no sign of easing as 2022 nears its end, with video-streaming platform Bilibili and Twitter-like microblogging service Weibo laying off hundreds of employees under the name of “business optimisation” amid a challenging economy.
While Chinese tech firms rarely admit to slashing jobs because lay-offs involving more than 20 employees require intervention from labour authorities under Chinese law, many companies have been carrying out so-called business restructuring since last year in a rush to cut costs.
The latest round of lay-offs at Shanghai-based Bilibili affects the company’s live-streaming and product divisions, according to two people familiar with the matter, who declined to be named because they were not authorised to speak with media.
Bilibili said in a statement on Wednesday that it has been adjusting some businesses, but there have been “no large-scale lay-offs”.
The year-end adjustments came after the company trimmed about 20 per cent of its positions in May, according to several Chinese media reports. Chen Rui, chairman and CEO of Bilibili, said in an earnings call last month that one of the company’s priorities was to cut losses.
While the precise reduction in headcount will only be revealed early next year when Hong Kong- and Nasdaq-listed Bilibili releases its annual report, the job cuts mark a sharp contrast with its boom years.
Bilibili’s payroll size ballooned a whopping 80 per cent from under 4,800 to over 8,600 in 2020, and grew a further 42 per cent to nearly 12,300 by the end of 2021.
