China's tech go-slow
China’s tech sector is in serious slowdown. Leading ride-hailing firm Didi Chuxing, for one, is cutting 15% of its workforce, while e-commerce giant JD.com is looking to lay off one-tenth of its top executives in 2009.
And generally, one in five Chinese tech companies plans to slash recruitment, according to employment outfit Liepin.com.
And there are signs of sector-specific trouble.
Bike-sharing outfit Ofo got a slapping at the tailend of last year after a court put the company on blacklist after Ofo defaulted on supplier payments. Rival Mobike posted a RMB4.6bn loss in 2018 and is unlikely to see a profit until 2021, according to analysts.
All this is having serious knock-on effects. Sequoia Capital China is reportedly looking to make up to 20% of its investment staff redundant. Job losses have so far occurred across the VC outfit’s technology and media, healthcare, consumer and industrial tech operations.
The company has investments in around 500 Chinese companies, among them JD.com, Didi Chuxing and Beijing Bytedance Technology.