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US software company SAS Institute has withdrawn from mainland China and dismissed its local staff, according to a Beijing-based employee affected by the move, as the analytics specialist ended more than two decades of operations amid intense domestic competition and geopolitical tensions. The company on Thursday announced the lay-offs via an email and hosted a short video call, in which executives thanked local employees for their contribution and cited “organisational optimisation” for the exit, according to the employee. “SAS is ceasing direct business operations in China,” an SAS spokeswoman said on Friday in response to the Post’s inquiry. “This decision reflects a broader shift in how we operate globally, optimising our footprint and ensuring long-term sustainability.” The company would continue having a presence on the mainland via third-party partners, according to the spokeswoman. About 400 jobs on the mainland were eliminated by SAS and each employee was asked to sign a separation agreement by November 14, according to a person with knowledge of the matter. The affected staff would receive a compensation package of one month’s pay for each year of service, two additional months of salary, an annual bonus and pay through the end of this year. SAS is expected to issue a public statement next week, according to another affected employee. The company’s simplified Chinese website has gone offline, and its career page no longer listed any job openings on the mainland. SAS’ exit marked the latest Western tech company to either scale down operations or exit from the world’s second-largest economy. In September, US computer giant Dell Technologies made job cuts at its EMC storage and Client Solutions Group operations in Shanghai and Xiamen, in southeastern Fujian province. That followed a new round of lay-offs at US chipmaker Micron Technology, as part of the company’s global retreat from the lacklustre mobile NAND memory market. Earlier this year, US computing giant IBM shut down one of its major domestic entities, IBM (China) Investment Co, 32 years after it was established. That followed last year’s lay-offs of over 1,000 employees at the IBM China Development Lab and China Systems Lab across several cities. Cary, North Carolina-based SAS first entered China in 1999 and in 2005 set up a research and development centre and a user support facility in Beijing. The firm was ranked as the mainland’s “top employer” for 17 consecutive years by Dutch researcher Top Employers Institute for its work benefits and corporate culture. “Our software answers strategic business questions no one else can – enabling you to control costs, drive revenue, achieve capital efficiency and lead with confidence,” SAS Institute co-founder and CEO James Goodnight said during a visit to Hong Kong in May 2001. At an SAS branch in Shanghai’s Xuhui district, the premises appeared mostly empty, with only a few staff members seen inside when the Post visited around noon on Friday. Plants and office furniture remained in place, while the reception desk still displayed a “Top Employer China 2021” plaque. SAS had two entities registered in Guangzhou, capital of Guangdong province, for its business activities in southern China. The entity SAS Software (Beijing) Co Guangzhou Branch terminated its office lease two months ago, while the other, SAS Software (Shanghai) Co Guangzhou Branch, had not operated at its registered address for at least a decade, according to a Post visit on Friday.
