Key Takeaways
- SAS Institute exits China after 25 years, cutting 400 jobs
- Layoffs announced via email and short video call citing “organisational optimisation”
- Company will maintain China presence through third-party partners
- Follows similar exits by Dell, Micron, and IBM from Chinese market
American analytics giant SAS Institute has withdrawn from China, ending its 25-year presence in the world’s second-largest economy. The company laid off approximately 400 employees in mainland China, announcing the job cuts through email and a brief video call.
Executives cited “organisational optimisation” as the reason for the exit during the virtual meeting. Affected staff were given until November 14 to sign separation agreements.
Compensation Package Details
The severance package includes:
- One month’s salary for each year of service
- Two additional months of pay
- Annual bonus payment
- Salary through December 2023
According to sources, SAS is expected to issue an official statement about the China exit next week. The company’s simplified Chinese website and mainland job postings have already been taken offline.
SAS Statement on China Restructuring
“SAS is transforming its business model in China to better serve our customers in an evolving market.”
A company spokeswoman confirmed SAS will maintain some presence in China through third-party partnerships, though direct operations have ceased.
Historical Presence and Empty Offices
SAS entered China in 1999 and established a Beijing R&D center in 2005. The North Carolina-based firm had been recognized as China’s “top employer” for 17 consecutive years by the Top Employers Institute.
“Our software answers strategic business questions no one else can – enabling you to control costs, drive revenue, achieve capital efficiency and lead with confidence,”
CEO James Goodnight stated during a 2001 Hong Kong visit.
Recent visits to SAS’s Shanghai office revealed largely empty spaces with few employees present. The reception area still displayed the company’s “Top Employer China 2021” plaque amid vacant workstations.
The company’s Guangzhou operations showed similar decline. One branch ended its office lease two months ago, while another hadn’t operated from its registered address for over a decade.
Broader US Tech Exodus from China
SAS joins several other American technology companies scaling back Chinese operations:
- Dell Technologies: Cut jobs at Shanghai and Xiamen units in September
- Micron Technology: Announced further layoffs due to weak NAND memory demand
- IBM: Shut down IBM (China) Investment Co. after 32 years, following 1,000+ layoffs last year
The exits come amid increasing domestic competition and geopolitical tensions affecting foreign tech firms in China.
