Representational image by Tim Gouw on Unsplash
Beijing: China is witnessing a spike in unemployment as several tech companies in the country have started laying off employees.
The ranks of the unemployed technology workers are swelling as China’s once-vibrant Internet industry is hit by a harsh and capricious regulatory crackdown, reports The HK Post.
Under the direction of China’s top leader, Xi Jinping, the government’s unbridled hand is meddling in big ways and small, leaving companies second-guessing their strategies and praying to not become the next targets for crackdown, the news portal reported.
In place of the pride and ambition that dominated a few years ago, fear and gloom now rule, as many tech companies lower their growth targets and lay off young, well-educated workers, The HK Post further reported.
The crackdown is killing the innovation, creativity and entrepreneurial spirit that made China a tech power in the past decade. It is destroying companies, profits and jobs that used to attract China’s best and brightest, reports the news portal.
Some Internet companies have been forced to shut down, while others are suffering from huge losses or disappointing earnings. Many publicly listed companies have seen their share prices fall by half, if not more.