Chinese tech companies are reportedly laying off staff amid the government's tech crackdown

Office workers walk along a street during lunch time in Beijing

Nicolas Asfouri/AFP via Getty Images

• Video streaming platform iQiyi is laying off some 20% of its workforce, reported Caixin Global.
• Short video app Kuaishou may cut 10% to 30% of its staff, The Paper reported.
• The news of the layoffs come after a tumultuous year in Chinese tech with the government rolling out a series of regulations to rein in the sector.

Layoffs have reportedly rocked China's tech sector amid the government's ongoing tech crackdown.

Among those affected are iQiyi — seen as the Netflix of China — and Kuaishou — a short video app competing against TikTok parent ByteDance.

Video streaming platform iQiyi is laying off hundreds of workers, or some 20% of its workforce across various departments, reported Caixin Global, citing company employees. The outlet reported that in the least profitable divisions, up to 40% of the staff have been made redundant.

According to a company press release, Nasdaq-listed iQiyi posted 1.4 billion Chinese yuan ($220 million) in operating losses in the third quarter this year,

The company saw decreased ad revenues after many of its programs were delayed due to COVID-19 production issues, it said in its third quarter earnings call. It is also dealing with programming shakeups. In August, iQiyi announced it would stop airing idol competitions amid the government's crackdown on fan culture, Reuters reported. 

Meanwhile, Kuaishou is also in the midst of a round of layoffs with mid-level managers and low-performing workers likely to go, reported China's The Paper, citing company employees. The media outlet cited staff saying on social media that the Hong Kong-listed company may cut between 10% to 30% of its staff.

Chinese tech firms typically lay off underperformers at the end of the calendar year, but there appear to be far more job cuts this year, the South China Morning Post reported. 

The news of the layoffs come after a tumultuous year in Chinese tech, with the government rolling out a series of regulations to rein in the sector. They include some of the world's strictest digital-privacy regulations, time limits on video gaming for children, and a ban on private tutoring, including online tutoring platforms.

The regulations have not spared China's tech heavyweights. ByteDance's edutech sector announced layoffs in August, according to Bloomberg. And Chinese e-commerce giant Alibaba on Monday announced it was reorganizing its businesses and would appoint a new CFO.

iQiyi and Kuaishou did not respond immediately to Insider's requests for comment.

 

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