After more than a decade as head of financial data analytics at a bank in Hanoi, 40-year-old Le Manh decided to resign.
Manh left in mid-2025 after enduring long hours of overtime and repeatedly revising reports to satisfy his supervisor’s “judgment.” But his efforts did not seem to be recognized.
Prolonged psychological pressure and frustration gradually eroded his motivation, prompting him to leave, he says.
“In business, results are immediately visible through sales figures. But whether a data analysis report is considered sound often depends on the boss’s perception.
“They quietly apply pressure so you become discouraged and resign on your own.”
Manh’s story is hardly unique.
In 2025 the labor market experienced strong upheaval: 10% of workers were laid off, 15% had to take on additional responsibilities amid corporate restructuring and 20% changed jobs voluntarily, according to the 2025-2026 Recruitment Market Report (based on a survey of over 3,000 businesses and employees) by TopCV Vietnam, an HR Tech company that provides a platform for job seekers and employers.
Workers aged over 40, Generation X, were the hardest hit, with a layoff rate of up to 19%.
AI changes the game
After years in data analysis, Manh observed that as technology advances, experienced workers appear to be losing ground though their expertise remains strong.
Tasks that once required seasoned professionals can now be handled more easily with AI support. As a result, data analysis departments have been restructured, with workforce reductions ranging from 30% to as high as 50%.
Most remaining roles only require Excel, SQL, AI tools, and basic financial knowledge. Each department needs just one or two specialists for strategic direction rather than a large team earning double or even triple the salaries of younger employees.
“In companies led by younger managers, older subordinates can sometimes be seen as difficult to manage,” Manh adds.
Generation X experienced the highest layoff rate of any age group last year, according to the TopCV report. Nearly two out of every 10 Gen X workers lost their jobs as businesses restructured to cut high-salary staff and those who no longer fit new operational models.
Layoff percentages were progressively lower among Generation Y (born 1980-1996) and Generation Z (born 1997-2012).
Instead of facing layoffs, these two younger groups are currently driving a “Great Resignation” wave. They are proactively job-hopping and prioritizing personal needs and professional purpose above all else.
Workers wait to apply for unemployment benefits at the Hanoi Employment Service Center, April 2025. Photo by Read/Hoang Giang |
Vu Van Phuc, 42, from Hanoi, worked as a technician at a Japanese-invested company specializing in industrial sewing machines, earning about VND25 million (US$950) a month, when he was laid off.
In 2024 the company downsized production, initially cutting salaries by 20% and then gradually reducing staff.
In mid year Phuc was informed he would receive one month’s salary as compensation before ending a job he had held for nearly half his life.
The sudden disruption left the family’s main breadwinner unprepared. His unemployment benefits of over VND8 million per month partially covered expenses during his long job search.
Fortunately, he and his family lived in the suburbs with his parents, and his children attended local schools.
In his final month of unemployment benefits he got a new job, but the pay was only 70% of his previous income and he had additional duties such as driving and sales promotion.
“Employers prefer candidates under 35. I had to lower some expectations because earning an income is the top priority,” he says.
Short-term gains
Dinh Ha My, HR director at a recruitment and training solutions firm, says workers aged 35-45 are experiencing the highest cuts in industries such as finance, banking, technology, and SMEs.
My notes that Gen Z employees often demonstrate less loyalty to employers and weaker emotional management skills compared to Gen Y and Gen X, and lack crisis-handling experience and deep understanding of partners and clients.
Companies that quickly replace older staff with younger ones risk damaging their employer brand, creating insecurity among employees and reducing long-term commitment, she warns.
If the trend continues, it could create a wave of middle-aged unemployment, increasing pressure on social welfare and social insurance systems, she says.
Workers should gradually build “career immunity” starting in their 20s and 30s rather than waiting until their 40s, she suggests.
Over the past two years 39-year-old communications specialist Khanh Ly has increasingly felt pressure at work.
As AI can now generate dozens of SEO articles and TikTok scripts within seconds, she has seen colleagues forced to change jobs or face pay cuts.
Rather than waiting for bad news, she leveraged her professional network to secure communications consulting contracts for small brands, targeting niches where AI cannot fully replace human input. She also earns an income from branded content writing, media networking and freelance book editing.
She says: “My overall income hasn’t decreased, but each day I divide my time between three or four projects. I have to be extremely disciplined to avoid drowning in deadlines.”
She admits to feeling exhausted at times but sees it as a necessary trade-off to maintain her standard of living rather than pursue wealth.
Her new workload requires more idea generation and forces her to master graphic design.
Ironically, she is also becoming accustomed to giving precise prompts to AI tools to support her daily tasks.
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