How 4 Alibaba workers who lay off employees found a popular bread restaurant
On a recent Thursday afternoon, about five to six young people were busy preparing evening events at a street restaurant in Hangzhou, the capital of Eastern China’s eastern province, celebrating a major renovation of the steamed bread restaurant that opened eight months ago.
Ummy Mummy Bun restaurant stands out in traditional places with a beer bar, bread, with unique fillings (such as pig intestines). But this is the founder – four former colleagues ruled by Alibaba Group Holding – that drives its prominence on Chinese social media.
While layoffs are common among large tech companies during business adjustments, few choose to leave the industry to open a restaurant. According to co-founder and store manager Xie Chenxi, the founders ended at about the same time when they spent at Alibaba at least five years last year.
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“The attention we’re getting is encouraging,” Xie said in a recent interview with Alibaba’s all South China Morning Post. “Many views are seen as setbacks, but we show that there are many possibilities besides working hard at large companies.”
Xie Chenxi, partner and store manager of Ummy Mummy. Photo: antout Alt = Xie Chenxi, partner and store manager of ummy Mummy. Photo: Lecture Notes>
Their story reflects how some employees of major Chinese tech companies get rid of the way they get rid of them Neijuan, Or “interaction”, which refers to the kind of cruel competition common in China, often leads to reduced returns and stagnation.
The phenomenon affected individuals and companies in various departments, prompting Beijing to take measures last year to reduce unhealthy competition, especially in the e-commerce industry.
However, financial sacrifices may lead to career changes. All four of BUN Restaurants partners hold P7 positions at Alibaba, which usually has annual incomes and sometimes over RMB 1 million ($137,000), a milestone for many young professionals in the industry. According to official data, China’s per capita disposable income was RMB 41,314 last year.
This 120 square metre (1,300 square feet) restaurant is a 15-minute drive from Alibaba headquarters and is still struggling to find profitability. But Xie is optimistic and points out that they sell hundreds of buns every day and explore new sources of revenue through live streaming.
Alibaba cuts its salary scale as part of its main business restructuring. Photo: AFP Alt = Alibaba has cut its salary scale, as part of a major business restructuring. Photo: AFP>
Since announcing a major business restructuring in 2023, Alibaba has been pruning non-core assets to refocus on e-commerce and cloud computing to regain its share in the competitive domestic market. The company has significantly cut its payroll size, with the number of employees falling by 24,940 last year, with an average of 68 departures a day.
Globally, the tech industry has also seen a wave of layoffs amid economic downturns and geopolitical tensions. In 2024, 550 technology companies laid off a total of 152,472 workers, according to online Tracker Bootoffs.fyi.
Twelve is one of the people who were fired last April. She was not surprised when she learned that her department was part of Alibaba’s local service group and would make adjustments and layoffs. “Last year, the wave of layoffs had been going on for quite some time – and sometimes the entire department disappeared.”
The decision to open a Bun restaurant instead of a coffee shop or any other business stems from Alibaba’s founder experience. During their time there, they often find themselves too busy to cook their meals, making bread a convenient lunch or dinner option.
“It’s simple yet satisfying – you can enjoy staple food, meat and vegetables in one go. It’s a versatile dish,” Xie explained.
Ummy Mummy was founded by four former Alibaba employees. Image: Handout Alt = Ummy Mummy was founded by four former Alibaba employees. Photo: Lecture Notes>
They envision their restaurant as more than a place to eat bread. They hope it is an emotional shelter and a source of inspiration for others facing career challenges.
A programmer who had been working until one night and found the restaurant was still open, said on social media that he felt “healed” by the atmosphere of the venue. Xie said an e-commerce live streamed her job anxiety after attending an event at a restaurant, saying she welcomes anyone who wants to explore new opportunities or reevaluate her career.
In early January, the founder was invited back to Alibaba’s campus to run a pop-up stall. Many Alibaba employees, including Xie’s former colleagues, show their support by queuing up to buy bread.
In reflecting on her time at Alibaba, Xie acknowledged its lasting impact on her journey. “The mindset of the constant innovation of the Internet industry remains; this is our application to the store,” she said. “After all, those of us in this industry are resilient.”
This article was originally published in the South China Morning Post (SCMP), the most authoritative voice about China and Asia for more than a century. For more SCMP stories, visit the SCMP application or visit SCMP’s Facebook and twitter page. Copyright © 2025 South Chine Morning Posterment Ltd. All rights reserved.
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