China’s prominent technology firms have reduced approximately 130,000 jobs in the last year due to the swift integration of artificial intelligence (AI) and corporate reorganization. Notably, Alibaba, Tencent, ByteDance, Meituan, and Baidu have disclosed significant job cuts across various sectors, such as travel, content, and e-commerce support, with reductions ranging from 30% to 50%. Over the recent 18 months, these top five internet companies have collectively downsized their workforce by over 130,000 employees.
Alibaba witnessed a decline in its headcount from around 194,000 to 128,000, marking a decrease of about 34%. Similarly, Baidu slashed nearly 10,000 jobs, while JD.com is in the process of planning approximately 12,000 job cuts. The report highlighted that this wave of layoffs is occurring amidst profit growth, signifying a shift from staff reductions for survival to staff optimization.
The companies’ job cuts align with a transition towards AI-driven products and services. Beijing’s ‘AI Plus Action Plan’ targets a 70% AI penetration in key industries by 2027 and 90% by 2030. Technologies like Alibaba’s Wukong platform offer automation for entire departments, providing capabilities for e-commerce, live streaming, and software development under a ‘one-person company’ model.
Experts estimate that around 70 million jobs, equivalent to 9.6% of China’s workforce, face a high risk of being replaced by AI, with younger employees being particularly vulnerable. The report suggested an unofficial “35-year ceiling” for job retention, indicating that workers in their mid-30s, often with families and financial commitments, are being laid off in large numbers.
The media report also shed light on the challenges faced by younger employees. For instance, a 26-year-old ByteDance worker, let go after six years in content operations, expressed disillusionment with the demanding work environment despite the company’s prestigious reputation. The report emphasized that even a resume boasting employment at a major tech firm no longer guarantees job security in the face of fierce competition.
The report criticized the Chinese government for not implementing protective policies for workers or offering adequate retraining opportunities. Instead, the government praises automation as a sign of advancement and progress in the tech sector.
