SAS Institute Exits Chinese Market, Ending Two Decades of Operations
In a significant strategic pivot, the US-based software company SAS Institute has announced its withdrawal from the Chinese market, thereby concluding over twenty years of business engagement. This decision comes amid escalating domestic competition and heightened geopolitical tensions.
As reported by the South China Morning Post (SCMP), the analytics firm has also executed job cuts affecting around 400 employees on the mainland. According to one impacted worker, the layoffs were communicated via email and a brief video conference call.
During this announcement, executives cited the rationale of “organizational optimization” for this reduction. Each axed employee has been instructed to sign a separation agreement by November 14.
The severance package includes compensation equivalent to one month’s salary for each year of service, an additional two months’ pay, an annual bonus, and salary continuation through the end of the calendar year.
Moreover, it is anticipated that SAS will release a public statement next week, as highlighted by a source from the company. Notably, the firm’s simplified Chinese website and job listings for the mainland have been deactivated.
Company Statement on Departure and Layoffs
In a communication to SCMP, a spokesperson for SAS remarked, “SAS is ceasing direct business operations in China. This decision mirrors a broader transformation in our global operational strategy, optimizing our footprint to ensure long-term sustainability.”
However, the representative emphasized that the company intends to sustain its presence in China through partnerships with third-party entities.
Founded in Cary, North Carolina, SAS ventured into the Chinese market in 1999, establishing a research and development center alongside a user support facility in Beijing in 2005.
For seventeen consecutive years, the company was recognized as the mainland’s “top employer” by the Dutch research organization Top Employers Institute, lauded for its employee benefits and workplace culture.
SAS Institute’s co-founder and CEO, James Goodnight, expressed during a visit to Hong Kong in May 2001, “Our software addresses strategic business inquiries like no other, allowing clients to manage expenses, drive revenue, ensure capital efficiency, and lead with assurance.”
During a visit to the SAS Shanghai branch, the SCMP noted that the office appeared largely vacant, inhabited by only a handful of employees.
Despite the dim atmosphere, office furniture and greenery remained in place, while the reception area prominently displayed a plaque recognizing SAS as a “Top Employer China 2021”.
Moreover, SAS operated two registered entities in Guangzhou, Guangdong province, for its southern China activities.
The office lease for the SAS Software (Beijing) Co., Guangzhou Branch was terminated two months ago, while the SAS Software (Shanghai) Co., Guangzhou Branch has reportedly been inactive at its registered location for at least a decade.
This departure follows a trend observed among several US technology firms reducing their footprint or exiting the burgeoning Chinese market.
In September, Dell Technologies implemented job reductions within its EMC storage and Client Solutions Group units, located in Shanghai and Xiamen, Fujian province.
This move was preceded by Micron Technology’s announcement of further layoffs, a part of its restructuring strategy in response to waning demand in the mobile NAND memory sector.
Earlier this year, IBM concluded operations at one of its principal local entities, IBM (China) Investment Co., marking the end of 32 years of service in the region.
This occurrence followed the preceding layoffs of over a thousand employees at the IBM China Development Lab and China Systems Lab across multiple urban locations.
Source link: Timesofindia.indiatimes.com.
