DistantNews
Support us
🇧🇩 Bangladesh /Technology

China firms quietly cut jobs as AI adoption accelerates

From Daily Star · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Chinese companies are implementing small, dispersed layoffs to adopt artificial intelligence and boost productivity while avoiding government scrutiny and social unrest.
  • AI tools are replacing tasks previously done by human workers, leading to reduced graduate recruitment and restructuring in marketing and front-end roles.
  • Firms face a challenge balancing Beijing's 'AI Plus' initiative with Chinese labor laws that restrict mass layoffs, prompting gradual cuts and attrition.

Chinese companies are quietly implementing layoffs as they integrate artificial intelligence, seeking to enhance productivity without attracting government attention or causing social instability. Workers report that AI tools like OpenClaw can fully replace human tasks, leading to dismissals and reduced hiring, particularly for recent graduates.

The tasks most people do can be completely replaced by OpenClaw. After a person writes all their workflows into OpenClaw, they can basically be fired.

— LiuA contractor at a large Chinese internet firm described how AI tools are replacing human tasks.

A senior manager in China's fintech sector noted that restructuring is widespread, with AI largely replacing marketing and front-end positions. Companies are navigating a delicate balance: China's "AI Plus" initiative aims for widespread AI adoption by 2027 and 2030, yet labor laws require government approval for significant layoffs. This pushes firms toward gradual cuts and attrition rather than mass dismissals to avoid "social instability" and political repercussions.

Private companies will need to make room for some level of inefficiency in order to avoid mass layoffs that would prompt 'social instability' and could have political ramifications.

— A senior manager at a large Chinese fintech companyDescribing the strategy companies are using to manage layoffs due to AI adoption.

Some employers are now monitoring AI usage, with one engineer reporting that his manager began ranking employees based on "token consumption," linking it to performance reviews. This metric fuels anxiety about job security. The entertainment sector is also experiencing sharp contractions, with one micro-drama producer's department shrinking drastically as AI takes over tasks previously handled by human teams.

I still can't shake the feeling that I'm getting closer to being replaced.

— A big data engineer at a Chinese tech giantExpressing anxiety about job security due to AI implementation and performance tracking.

Citibank estimates that about 9.6% of Chinese jobs, or 70 million, are at high risk of AI displacement, with workers in their 20s facing a 13.6% risk. This comes as a record 12.7 million university graduates enter the workforce, facing a challenging job market with declining entry-level pay and fewer opportunities.

With live-action, a single actor costs thousands of yuan per day, even for a minor role.

— AyaseA former micro drama producer explained the cost-effectiveness of AI in the entertainment sector.
DistantNews Editorial

Originally published by Daily Star in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog