On a recent Thursday afternoon, around five or six young people were busily preparing for an evening event at a street-side restaurant in Hangzhou, capital of China’s eastern Zhejiang province, celebrating the major renovation of the steamed bun eatery that had opened eight months earlier.
The Ummy Mummy bun restaurant stands out from traditional establishments with its beer bar at the entrance and buns with unique fillings, such as pig intestines. But it was the founders – four former colleagues laid off by Alibaba Group Holding – who propelled its rise to prominence on Chinese social media.
While lay-offs are common in big tech companies during business adjustments, few opt to leave the industry entirely to open a restaurant. The founders, who were all terminated around the same time last year after spending at least five years at Alibaba, wanted to embark on a new chapter in their 30s, according to co-founder and store manager Xie Chenxi.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
“The attention we’ve received is encouraging,” Xie said in a recent interview with the South China Morning Post, which is owned by Alibaba. “Many view being laid off as a setback, but we’ve shown that there are many possibilities beyond working hard at large companies.”
Xie Chenxi, partner and and store manager of Ummy Mummy. Photo: Handout alt=Xie Chenxi, partner and and store manager of Ummy Mummy. Photo: Handout>
Their story exemplifies how some employees at major Chinese tech firms are choosing to break free from the cycle of neijuan, or “involution”, which refers to the kind of cutthroat competition that is common in China and often results in diminishing returns and stagnation.
This phenomenon affects both individuals and companies across various sectors, prompting Beijing to take measures last year to reduce unhealthy competition, particularly in the e-commerce industry.
However, a career shift can come with financial sacrifices. All four partners at the bun restaurant held P7 positions at Alibaba, which typically offer annual salaries nearing, and sometimes exceeding 1 million yuan (US$137,000) – a milestone for many young professionals in the industry. China’s annual per capita disposable income last year was 41,314 yuan, according to official data.
The 120-square-metre (1,300 sq ft) restaurant, a 15-minute drive from the Alibaba headquarters, is still striving for profitability. But Xie is optimistic, noting that they sell hundreds of buns daily and are exploring new revenue sources through live-streaming.
Alibaba has slashed its payroll size as part of a major business restructuring. Photo: AFP alt=Alibaba has slashed its payroll size as part of a major business restructuring. Photo: AFP>
Since announcing a major business restructuring in 2023, Alibaba has been trimming noncore assets to refocus on e-commerce and cloud computing in a bid to regain its share in a highly competitive domestic market. The company has significantly cut its payroll size, with employee count falling by 24,940 last year, averaging 68 departures daily.
Globally, the tech industry has also seen waves of lay-offs amid economic downturns and geopolitical tensions. In 2024, 550 tech companies laid off at total of 152,472 workers, according to data from online tracker Layoffs.fyi.
Xie was among those laid off last April. When she learned that her department, part of Alibaba’s local services group, would be undergoing adjustments and cutting staff, she was not surprised. “The wave of job cuts had been ongoing for quite a while last year – sometimes entire departments vanished,” Xie recalled, adding that she was “mentally prepared” for the change.
The decision to open a bun restaurant, rather than a coffee shop or any other business, stemmed from the founders’ experiences at Alibaba. During their time there, they often found themselves too busy to have a proper meal, making buns a convenient lunch or dinner option.
“It’s simple yet satisfying – you can enjoy staple food, meat, and vegetables all in one bite. It’s a versatile dish,” Xie explained, highlighting the variety of fillings available.
Ummy Mummy is established by four former Alibaba employees. Photo: Handout alt=Ummy Mummy is established by four former Alibaba employees. Photo: Handout>
They envision their restaurant as more than just a place to eat buns; they hope it serves as an emotional refuge and a source of inspiration for others facing career challenges.
A programmer, who worked till late one evening and found that the restaurant was still open, said on social media that he felt “healed” by the venue’s ambience. An e-commerce live-streamer overcame her work anxiety after taking part in the restaurant’s activities, according to Xie, who said she welcomed anyone looking to explore new opportunities or re-evaluate their careers.
In early January, the founders were invited back to the Alibaba campus to run a pop-up stall. Many Alibaba employees, including Xie’s former colleagues, showed their support by queuing up to buy buns.
Reflecting on her time at Alibaba, Xie acknowledged its lasting impact on her journey. “The mindset of constant innovation in the internet industry remains with us; it’s something we apply to our store,” she said. “After all, those of us from this industry are resilient.”
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
