SAS Cuts 400 Jobs as Software Giant Exits China After 25 Years

American analytics software company SAS laid off 400 employees on November 6, 2025, as part of its complete withdrawal from the Chinese market after operating in the country for 25 years. The workforce reduction was conducted through video calls, marking the end of SAS's quarter-century presence in one of the world's largest technology markets.

The layoffs represent a significant strategic shift for the North Carolina-based company, which has maintained operations in China since 2000. SAS cited changing market conditions and regulatory challenges as primary factors behind the decision to cease Chinese operations entirely.

Context of the Decision

The decision to exit China reflects broader tensions between U.S. technology companies and Chinese regulatory authorities. SAS joins a growing list of American software firms reassessing their China strategies amid increasing data security requirements and geopolitical pressures.

The analytics software market in China has become increasingly competitive, with domestic players gaining government preference for data-sensitive applications. Chinese regulations requiring local data storage and increased scrutiny of foreign software companies have created operational challenges for international firms like SAS.

SAS's withdrawal also aligns with the company's broader restructuring efforts as it adapts to changing customer demands and increased competition from cloud-native analytics platforms. The company has been investing heavily in artificial intelligence and machine learning capabilities while streamlining operations in markets where growth prospects have diminished.

Impact on Operations

The 400 affected employees primarily worked across SAS's Chinese offices, including sales, technical support, and local development teams. The layoffs eliminate SAS's direct presence in China, though the company indicated it may continue serving Chinese customers through partner channels and remote support.

The workforce reduction represents approximately 2% of SAS's global workforce of roughly 20,000 employees. The company conducted the layoffs via video conference calls, providing affected employees with severance packages and transition support services.

SAS's departure leaves existing Chinese customers seeking alternative analytics solutions or transitioning to the company's cloud-based offerings accessed from outside China. The company has been working with affected clients to ensure continuity of critical analytics workloads during the transition period.

Company Financial Background

SAS, founded in 1976, remains one of the largest privately-held software companies globally, with annual revenues exceeding $3 billion. The company has maintained steady growth in recent years, though it faces increasing competition from cloud-first analytics providers like Snowflake, Databricks, and public cloud platforms.

The Chinese market represented a relatively small portion of SAS's overall revenue, estimated at less than 5% of global sales. However, the market had been viewed as a long-term growth opportunity, particularly for the company's advanced analytics and artificial intelligence solutions.

SAS has been investing heavily in cloud transformation and AI capabilities, allocating significant resources to compete with newer, venture-backed analytics companies. The company's decision to exit China allows it to redirect resources toward higher-growth markets and strategic technology investments.

Industry Outlook

The analytics software industry continues experiencing rapid consolidation and technological disruption. Traditional enterprise software companies like SAS face pressure from cloud-native competitors offering more flexible, scalable solutions at lower costs.

Several major U.S. technology companies have reduced or eliminated their China operations in recent years, citing regulatory challenges and market access restrictions. This trend has accelerated as both countries implement policies favoring domestic technology providers.

The global analytics software market remains robust, driven by increasing demand for data-driven decision making and artificial intelligence applications. However, companies are increasingly focusing resources on markets with clearer regulatory frameworks and stronger growth trajectories.

Conclusion

SAS's exit from China and the resulting 400 layoffs signal the company's strategic pivot toward markets offering better long-term prospects. While the departure closes a significant chapter in SAS's international expansion, it enables the company to concentrate resources on cloud transformation and AI innovation in more favorable regulatory environments. The move reflects broader industry trends as U.S. technology companies navigate an increasingly complex global landscape while adapting to evolving customer demands and competitive pressures.