China's tech giants renew mid-level managerial ranks with young employees

Source:Global Times Published: 2019/3/20 19:58:40

Tech giants renew mid-level managerial ranks with young employees


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China's internet giants are replacing mid-level managers with younger employees to maintain innovation and vitality, a move an analyst said on Wednesday would drive these companies to meet fierce competition and secure dominance in the industry.

Major internet players such as Baidu, Alibaba, and Tencent, also known as BAT, are speeding up promotion for younger employees to replace mid-level managers, and companies including JD.com and smartphone maker Xiaomi are also following this trend.

Tencent has cut 10 percent of its mid-level managers since December, which is seen as the biggest leadership renewal since its foundation, according to a report from the National Business Daily. Baidu announced last week that the search engine specialist will promote more employees in their 20s and 30s to management positions, after 53-year-old president Zhang Yaqin opted for retirement, the report said.

Alibaba also said that the 1980s generation employees account for up to 80 percent of the company's managers and technology staff, while the 1990s generation accounts for 5 percent of its managerial team, according to awtmt.com, an industry website.

The "angst about aging" of Chinese technology giants is supposed to provide them with new energy to meet the fierce challenge of emerging companies and downward economic pressure, said Liu Dingding, a Beijing-based industry analyst. "In China's internet industry, successful products are more likely to be developed by small start-ups and small development teams of these huge companies," Liu said. 

Rising companies like ByteDance are rapidly becoming threats to the dominance of established companies in the 30-year-old internet industry, Liu added. 

Sustained innovation shores up core competence, as most hot products were developed by young people, Liu said.


Newspaper headline: Tech giants renew mid-level managerial ranks with young employees



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