China tech firms reduce workforce by 1.3 lakh amid AI transition

China’s leading technology firms have reportedly cut around 1.3 lakh jobs amid AI adoption and restructuring. Companies including Alibaba, Tencent and ByteDance are reducing staff while shifting toward automation. A report criticised the Chinese government for not addressing workforce disruption or retraining needs

New Delhi: China’s major technology companies have trimmed nearly 1.3 lakh jobs over the past year as rapid adoption of artificial intelligence (AI) and corporate restructuring reshape the sector, with a new report criticising the Chinese Communist Party (CPC) for remaining silent over the large-scale workforce disruption.

The report from Sri Lanka-based Daily Mirror said Alibaba, Tencent, ByteDance, Meituan and Baidu have announced tens of thousands of job cuts with some divisions — notably travel, content and e‑commerce support — reporting cuts of 30 per cent to 50 per cent.

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Over the past 18 months, the five major internet companies collectively have laid off more than 1.3 lakh staff, the report said. Alibaba’s headcount fell from about 194,000 to 128,000, a decline of around 34 per cent, while Baidu cut nearly 10,000 employees; and JD.com is planning about 12,000 job cuts, the report added.

“What makes this round of layoffs particularly unsettling is that it is happening even as profits grow. In the past, companies cut staff to survive; now they cut staff to optimise,” the report said.

Companies announced the cuts as part of a shift to AI‑driven products and services. “Beijing’s ‘AI Plus Action Plan” aims for 70 per cent AI penetration in key industries by 2027 and 90 per cent by 2030. Tools like Alibaba’s Wukong platform promise to automate entire departments, offering “one‑person company” capabilities for e‑commerce, live streaming, and software development,” the report said.

Experts estimated that roughly 70 million jobs or 9.6 per cent of China’s workforce are at high risk of being replaced by AI, with younger workers facing higher risk. A “35‑year ceiling” for remaining employed has unofficially emerged, the report said, alleging that workers in their mid‑30s, often married with mortgages and children, are being dismissed en masse.

“Younger workers are no safer. A 26‑year‑old ByteDance employee, laid off after six years in content operations, admitted that while the company’s name once carried prestige, the reality was relentless overtime and crushing competition. Now, even the resume boost of a big‑tech brand offers little protection,” the report noted. T

he media house said that the government refrains from implementing policies to protect workers or retrain employees, and instead lauds automation as a symbol of progress.