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Home » China’s tech companies push employees to the limits
China

China’s tech companies push employees to the limits

i2wtcBy i2wtcJune 24, 2024No Comments8 Mins Read
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JD.com founder Richard Liu, during a recent video conference with his office staff, added a warning to his words of encouragement: His company has no room for anyone who wants work-life balance.

“We have employees who like to enjoy life, who put life first and work second. I understand that you don’t want to work hard, and it’s everyone’s choice. So I can only say that you are not our brothers, but just passers-by,” Liu told those in attendance, according to an audio recording posted on social media. “We shouldn’t work together.”

Liu said the Chinese e-commerce group will step up efforts to weed out IT engineers who work hard and don’t deliver results, and will reward employees who do a good job.

The warning is not unusual: Facing a new reality of slow growth, tougher competition and investor disinterest, China’s tech executives are seeing many cut staff and make tougher demands on those who stay.

Chinese engineers have never enjoyed the perks offered to their Silicon Valley counterparts, who enjoy perks like an on-site doctor and access to a sushi bar. Jack Ma, founder of Chinese e-commerce company Alibaba, famously told employees that the tech industry standard of 996 hours (9 a.m. to 9 p.m., six days a week) was a “blessing.” But the round-the-clock work schedule has been improved in recent years under President Xi Jinping’s “shared prosperity” campaign, which aims to reduce income inequality and promote equality.

Now, amid slowing growth and falling share prices (China’s top five publicly listed technology companies have lost a combined $1.3 trillion in market capitalization since their 2021 peak), executives are returning to the leaner, more energetic days of startups.

Some in the industry see e-commerce group Pinduoduo as a role model: last year the Shanghai-based company made profits of RMB 60bn (£6.5bn), the equivalent of RMB 3.4m for every 17,000 employees, making it three times more productive than Tencent and nine times more productive than Alibaba.

That forces Pinduoduo staff to work long hours; in 2021, two employees died in accidents that colleagues believed were caused by overwork. One former employee said the hours were so long during her two years with the company that she basically gave up “socializing, hobbies, and even a romantic life.” “After I quit, I felt like I was reconnecting with society,” she said.

Pinduoduo said it is a “dynamic, fast-paced company” and is “committed to providing its employees with a positive and productive work environment.”

In a recent video conference with staff, JD.com founder Richard Liu added a warning to his words of encouragement.
In a recent video conference with staff, JD.com founder Richard Liu added a warning to his words of encouragement. © Billy H.C. Kwok/Bloomberg

Industry pillars Alibaba and Tencent have cut tens of thousands of employees since 2021 to boost their own companies’ efficiency, and Tencent executives acknowledged that they were adding “low-cost talent” — typically younger workers — when they were hiring.

Ding Wenhua, who recently left ByteDance’s TikTok, said avoiding unemployment felt like a game in which the platform you stood on kept shrinking randomly and you had to jump around to keep from falling. “There’s always that feeling that you might get fired, and everyone is very nervous and anxious about it.”

New euphemisms mask the pain: Companies talk about “optimizing” their workforce, and employees tell friends they’re “graduating” or getting a “big gift” from their employer — being fired with a severance package.

The upheaval has hit older workers, mostly tech professionals over 35, the age group where the threat of layoffs is greatest and the job market is toughest. Bosses often see workers over 35 as less willing to put in the long hours because of family commitments and as an added cost. “It’s never been this hard to find a job,” said an infrastructure engineer nearing 40 who was recently laid off by ride-hailing company Didi.

Jenny Chan, an associate professor of sociology at the Hong Kong Polytechnic University, added that tech companies are “looking for younger, unmarried talent in big cities with flexible hours, while firing older, less ‘competitive’ talent.” “For those with families, the work-family conflict is acute,” she said.

Last year, recruitment platform Lagou and counselling service Yixinli conducted a work-related survey of 2,200 professionals working in major Chinese cities, finding that 60% were worried about uncertain career development prospects, and 44% were concerned about a lack of work-life balance.

“A lot of people in this industry experience some level of depression and the pressure on us is huge,” said one China-based TikTok employee, who said she has been on and off medication for mental health issues. Because TikTok operates globally, the work is never done, she said. “I often have meetings in the middle of the night.”

At Tencent in Guangzhou, China, employees take a nap during their lunch break.
At Tencent in Guangzhou, China, employees take a nap during their lunch break. © Shen Qilai/The New York Times/Redux/eyevine

The 31-year-old said the strict culture at parent company ByteDance was more stressful than the long hours. NeifanIt’s a phrase widely used in China to describe the ruthless competition to outdo others in the same industry.

Biao Shan, a social anthropologist at the Max Planck Institute, said the word, which translates as “degeneration,” is growing in popularity in China as workers connect personal insecurity with broader change. “There’s no absolute increase in opportunities because the overall economy isn’t growing,” Shan said. “What can we do? We can only squeeze more and more out of ourselves and out of our workers. We can only intensify our efforts without generating any real benefits.”

For many in China, comments made last month by Baidu’s vice president of public relations, Qu Jing, Neifan Here’s the result: In a series of short videos posted online, Ku lashed out at his expectations of staff, including their willingness to accompany him on business trips lasting more than a month.

“If you don’t want to be on the road with me for 50 days, if you want to go home, don’t come asking for a raise or a promotion,” she said in one video. She added that she told her staff they had to be on call at all times, and didn’t care if the work affected their personal lives. “I’m not your mom,” she said. “All I care about is results.”

After Qu’s short video went viral in China, Baidu fired her and said her opinions did not reflect the company’s culture.

But tech workers who spoke to the Financial Times said they saw Mr. Qu’s attitude in bosses who expected work to always come first: Dedication was a prerequisite for promotion, they said, and they often enforced working hours by requiring employees to swipe in and out.

“Even if you’re on vacation, you still need to respond to messages,” Ding said. “You’d better show up to any meetings you’re supposed to be in, otherwise it’s going to be a huge hassle.”

The Tencent Games developer agreed that he often finds himself immersed in his work: “On the outside, I appear very calm,” he said, “but the pressure is intense, and we are like a gear that keeps grinding until it runs out of oil and breaks.”

“If I don’t have to work overtime on the weekend, I’ll lock myself away for two days so I don’t have to talk,” he charged. Neifan And there are no independent trade unions to address this situation.

Tencent, ByteDance and JD did not respond to requests for comment.

A worker monitors computers in a command center at online retailer JD.com's headquarters in Beijing.
A worker monitors a computer in a command center at online retailer JD.com’s headquarters in Beijing. Tech workers have made some progress in their fight against long working hours. © Mark Schiefelbein/AP

Yet for many Chinese, tech remains the best place to work, as recent graduates are drawn to companies that are relatively meritocratic, where hard work and good performance can lead to social mobility. The industry is also one of the highest-paying jobs in the country, especially as Beijing pressures financial institutions to cut employee pay.

“The reason I stay is simple: the pay is good,” a TikTok employee said. “It’s a place where regular people get opportunities if they work hard.” Companies also typically offer perks like free food and on-site gyms.

Tech workers have protested against long hours and made some progress.

Last year, programmers organized a campaign against the industry standard of 996 hours. The campaign became known as “996.icu” – a play on the saying that your work schedule ends with admission to intensive care. They rallied on GitHub, beyond the reach of Beijing’s censors.

The anti-996 campaign briefly won sympathy in state media. In 2021, China’s Supreme Court declared Schedule 996 illegal as President Xi Jinping cracked down on figures like Ma. The victory came at a price: Authorities detained three labor activists involved in the campaign and sentenced them to two to five years in prison.

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Bytedance office in Beijing

Technology workers report that while work hours during the week remain long, most companies no longer expect them to regularly work in the office on Saturdays.

But for employers facing China’s fiercely competitive technology industry, the drive to inspire employees remains.

Li Ming, a technology founder, said he was thinking about how to get his small team to work harder, and complained that some employees left work before him every night.

“On the one hand, I understand that our employees leave work at 7:30 every night because they have to get home to their families,” he says. “On the other hand, we want them to work until 9 or 10. That’s what our competitors do. If we don’t do that too, how will we survive?”

*Names of technology experts have been changed

Additional reporting by Wenjie Ding and Kai Warszewski



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