SAS Exits China After Two Decades, Lays Off 400 Employees
US software firm SAS Institute has completely withdrawn from the Chinese market, ending its 20+ year presence amid escalating US-China tech tensions. The company laid off approximately 400 employees in mainland China with severance packages including one month’s salary for each year of service.
Key Developments
- SAS ceases direct operations in China after more than two decades
- Approximately 400 employees laid off in mainland China
- Compensation package includes month’s pay per service year plus additional benefits
- Company will maintain presence through third-party partners
Exit Details and Compensation
The layoffs were announced via email and a short video citing “organisational optimisation” as the reason. Affected employees received compensation packages comprising:
- One month’s salary for each year of service
- Additional two months’ pay
- Annual bonus payment
- Salary coverage through year-end
The company’s simplified Chinese website and mainland job listings have been taken offline. According to reports, SAS is expected to release an official public statement next week.
Official Statement
“SAS is ceasing direct business operations in China. This decision reflects a broader shift in how we operate globally, optimising our footprint and ensuring long-term sustainability,” the company stated to SCMP.
A spokeswoman confirmed that SAS will maintain some presence in China through third-party partners, though direct operations have ended.
SAS’s China Legacy
Headquartered in Cary, North Carolina, SAS first entered the Chinese market in 1999. The company established a Beijing research and development center along with user support facilities in 2005. For 17 consecutive years, SAS was recognized as China’s “Top Employer” by the Dutch research firm Top Employers Institute, acknowledging its employee benefits and workplace culture.
Broader US-China Tech Context
The exit occurs amid ongoing technology tensions between the US and China. Recently, the US and South Korea signed an agreement strengthening cooperation in artificial intelligence, quantum computing, and 6G technologies.
The pact, signed during President Donald Trump’s South Korea visit for the APEC Summit, aims to counter China’s tech expansion. It includes collaboration on tightening AI export controls, easing regulatory hurdles for tech firms, and simplifying cross-border data storage and usage.
The agreement also focuses on strengthening biotechnology and pharmaceutical supply chains, enhancing research security, safeguarding quantum technology progress, and fostering cooperation in space exploration and 6G telecommunications.
