The Decline of High Salaries in China's Internet Industry: Market Saturation and Changing Expectations

Recent comments by Lagou CEO Xu Duandan highlighted that large‑tech employees now demand 30% salary increases when changing jobs, reflecting a mindset shaped by years of industry red‑line growth and abundant capital.

Interviewees expressed mixed views: some agreed that high salaries were a product of industry boom, while others argued that technology development inherently requires substantial payroll.

Case studies illustrate the shift: Qianqian, a former online‑education professional, experienced a drastic drop in salary and benefits after leaving a top firm; Li Liwei saw his salary growth slow dramatically after multiple jumps; and veteran engineer Yu Feng now refuses any salary cut below his previous level.

Industry analysts point out that the internet sector’s rapid expansion was fueled by capital and a lack of profit pressure, allowing firms to offer generous compensation; however, as growth slows, companies are tightening budgets, reducing perks, and becoming more selective.

Recruiters note that the talent pool has swelled to tens of millions, creating oversupply and forcing firms to reassess salary benchmarks, while job seekers must align expectations with market realities.

Overall, the consensus is that high salaries in the internet sector were a historical phenomenon driven by market dynamics, and future compensation will likely normalize, emphasizing the need for professionals to evaluate their value and adapt to a more competitive job environment.