SAS ends direct operations in China after 25 years, shifts to partner model and cuts about 400 jobs

A sudden retreat highlights a changing China market

US analytics company SAS Institute has closed its direct operations in mainland China after roughly 25 years, dismissing about 400 employees and shifting to a partner led presence. The move ends a long run in one of the worlds largest enterprise software markets and points to a new reality shaped by tougher local competition, stricter data rules, and higher geopolitical risk.

The decision was conveyed to staff in China in an email followed by a short video call, according to a Beijing based employee affected by the move. Executives thanked teams for their work and described the change as organisational optimisation, the person said. SAS plans to keep serving customers in China through third party partners rather than its own local entity.

An SAS spokeswoman confirmed that the company is ceasing direct business operations in China and framed the move as part of a global reset of where the firm operates and invests.

This decision reflects a broader shift in how we operate globally, optimising our footprint and ensuring long term sustainability.

People familiar with the plan said around 400 jobs on the mainland were eliminated. Affected staff were asked to sign separation agreements by November 14 and were offered compensation that included one month of pay for each year of service, two additional months of salary, an annual bonus, and pay through the end of this year. The companys simplified Chinese website has gone offline, and its career page no longer lists mainland roles. A public statement is expected next week.

For customers, SAS says day to day service will transition to certified partners. That channel model is common among global software vendors in China and can reduce exposure to compliance requirements, hiring constraints, and cost in country teams.

Why foreign enterprise software faces headwinds in China

Enterprise software providers from outside China have faced intensifying pressure in recent years. A national push for homegrown technology in government and strategic industries has lifted domestic suppliers. Procurement rules, security reviews, and the requirement to handle sensitive data inside China have made local options more attractive for many buyers. Price competition is fierce and vendors that integrate smoothly with Chinese clouds and workplace tools tend to win.

Rising local rivals in analytics and BI

Chinese cloud platforms and business intelligence specialists now offer mature tools that cover dashboards, self service analytics, and data governance. Offerings from Alibaba Cloud, Tencent Cloud, and Huawei Cloud are bundled with compute and databases. Leading domestic BI vendors such as Fanruan with FineBI and FineReport, Smartbi, and others tailor features for Chinese language users and local reporting standards. Integration with widely used office and collaboration suites, including DingTalk, WeChat Work, and Feishu, lowers adoption costs and encourages consolidation around local ecosystems.

The shift from large perpetual licenses to flexible cloud subscriptions has also reduced switching friction. Companies can try domestic services at lower entry cost, scale as needed, and rely on responsive local support. Those advantages create a high bar for international software that must meet performance expectations, align with procurement rules, and keep data inside China.

Regulation of data and security

China has tightened control over data flows and security since the mid 2010s. The Cybersecurity Law (2017) created duties for critical information infrastructure operators. The Data Security Law (2021) classifies data by risk and restricts export of important datasets. The Personal Information Protection Law (2021) sets strict rules for consent and cross border transfers. Foreign vendors that rely on global cloud services, or that move telemetry and logs out of China, face higher compliance costs. Many buyers now require on premises deployments or locally hosted services that undergo security assessments.

Geopolitics and the recalibration of US and China tech ties

Tension between the US and China has reshaped the operating playbook for global tech. US export controls on advanced chips and related technologies, and Chinese countermeasures such as cybersecurity reviews, have raised the risk for cross border tech deals. Analytics software is not the direct target of most export restrictions, yet companies in sensitive sectors prefer suppliers that pose minimal risk of disruption from sanctions or policy shifts. That often means choosing domestic vendors or using foreign software through local intermediaries.

Executives increasingly weigh legal exposure, reputational risk, and the administrative work required to comply with overlapping regimes. That calculus can favor a lighter footprint, moving from direct operations to distributor models and regional hubs. It reduces fixed costs and helps companies keep serving customers without running a large presence inside the country.

A pivot to a partner model

SAS says it will maintain a presence in China through third party partners. In practice, that means resellers and system integrators will handle sales, first line support, training, and local compliance paperwork. The vendor retains ownership of core product development and strategic account management, while partners adapt deployments to local cloud platforms and industry standards.

This approach reduces exposure to hiring, payroll, and regulatory complexity. It is also a way to maintain continuity for existing clients, especially multinationals that use the same analytics stack across regions. The trade off is less direct control over customer experience, slower feedback loops from the field, and greater variability in service quality across partners. Vendors that succeed with this model invest in strict partner certification, clear escalation paths, and joint offers with local cloud providers.

What this means for customers in China

Enterprises with active SAS licenses should expect a transition to certified partners for on the ground support. Support tickets will likely be handled through regional hubs outside China for advanced issues, while partner engineers provide site visits, training, and incident response locally. For deployments in sectors that restrict data movement, on premises solutions or locally hosted environments will remain essential.

SAS Viya, the companys cloud era platform, can be deployed in multiple modes. In China, many organizations rely on on premises clusters or private cloud inside domestic data centers. Partner led implementations on Alibaba Cloud or Huawei Cloud can maintain data residency and integrate with domestic databases and identity systems. Buyers will look for clear guidance on security certifications, update cadence, and how patches and hotfixes will be delivered without a direct local office.

Procurement processes are also likely to change. Contracts may shift to distributor led invoices in renminbi, with training delivered by partner academies or virtual classes. Customers should review service level agreements, escalation contacts, and license compliance procedures during the handover to avoid gaps.

The layoffs in a wider tech retrenchment

SASs cuts come amid a broad reset across technology companies in 2025. Amazon announced 14,000 corporate job cuts in late October. Microsoft reduced headcount by 9,000 in July after a 6,000 person round in May. Meta eliminated more than 100 roles in a risk review group and cut around 600 positions in its AI unit earlier in the year, alongside a broader workforce reshaping. Salesforce trimmed thousands of customer support jobs and moved many interactions to AI agents that handle a large volume of conversations. Google reduced staff in parts of its cloud design teams and cut hundreds of roles across business units. These moves aim to curb costs, flatten management layers, and redirect investment to AI and cloud infrastructure.

Not every layoff is driven by automation. Many companies are consolidating global hubs, exiting markets with rising compliance overhead, or simplifying product portfolios. In that context, SAS described its China exit as part of a global rebalancing of where it operates. The company is keeping a channel presence instead of a direct office, which aligns with a pattern of leaner footprints in more complex markets.

Reactions inside SAS and across the industry

Some affected employees described shock at the speed of the shutdown, noting that access to internal systems ended quickly and handovers were limited. That is common in immediate term restructurings, where firms prioritize security and legal obligations. Others expressed concern about client continuity and the loss of local expertise built up over decades of projects in finance, telecom, manufacturing, and government related accounts.

The exit also triggered speculation about whether other regions would see changes. SAS has long operated significant hubs outside China. The company said it is optimising its footprint globally, which can involve concentrating work in fewer locations and deeper partnerships with system integrators. The focus for customers and partners now is clarity on who supports which accounts, how upgrades will be delivered, and how training and certifications continue.

Can analytics vendors still grow in China without a direct office

Growth is possible, but the addressable market shifts. Multinational corporations, foreign joint ventures, and export oriented Chinese firms often maintain mixed stacks of domestic and international software. These clients value continuity with global risk models, stress tests, and regulatory reporting frameworks. Partner led projects can serve those needs if the vendor maintains strong technical oversight and well trained local teams.

State owned enterprises and critical infrastructure tend to favor domestic suppliers, especially when procurement rules or security reviews reward local technology. In that space, foreign analytics vendors are more likely to compete in niche areas where specialized statistical methods, model governance features, or industry specific solutions remain a differentiator. Success depends on clear proof of data residency, security certifications, and integration with domestic databases and middleware.

What to watch next

Several signals will indicate how the transition unfolds. First, look for SAS to publish an official statement with more detail on the partner ecosystem in China and any commitments on service levels. Second, expect updates on localization for documentation, user interfaces, and training, now that the simplified Chinese website is offline. Third, watch how the company supports Viya deployments inside Chinese clouds, including guidance on security assessments and patch delivery. Finally, customers should prepare for license renewals through distributors and confirm escalation paths for critical incidents.

The Bottom Line

• SAS ended direct business operations in mainland China after about 25 years and will serve the market through third party partners.
• Roughly 400 employees in China were laid off, with separation agreements requested by November 14 and compensation including tenure based pay, two extra months of salary, an annual bonus, and pay through year end.
• An SAS spokeswoman said the decision is part of a broader global shift to optimise the companys footprint and ensure long term sustainability.
• The exit comes amid stronger domestic competition, tighter data and security rules, and higher geopolitical risk for foreign tech in China.
• SASs Chinese language website is offline and job listings for the mainland have been removed.
• Customers should expect support to transition to certified partners, with on premises or locally hosted deployments remaining key in regulated sectors.
• The move lands in a year of extensive tech layoffs at major firms as companies reshape spending and focus on AI and cloud priorities.