China tech layoffs: 1.3 lakh jobs cut as AI reshapes sector
Synopsis
China's biggest tech firms are cutting staff even as profits grow — a structural shift where AI replaces headcount not to survive downturns but to optimise margins. With 1.3 lakh jobs gone in 18 months and 70 million more at risk, Beijing's silence on worker protection is drawing sharp criticism.
Key Takeaways
Alibaba , Tencent , ByteDance , Meituan , and Baidu have collectively cut more than 1.3 lakh jobs over the past 18 months .
Alibaba's headcount dropped from approximately 1,94,000 to 1,28,000 — a fall of around 34 per cent .
Beijing's 'AI Plus Action Plan' targets 70 per cent AI penetration in key industries by 2027 and 90 per cent by 2030 .
Experts estimate roughly 70 million jobs — 9.6 per cent of China's workforce — are at high risk of AI displacement.
An unofficial '35-year ceiling' has reportedly emerged, with mid-30s workers being let go en masse.
Critics allege the Chinese Communist Party (CPC) has offered no worker retraining or protection policies in response.
China's five largest technology companies have collectively shed more than 1.3 lakh employees over the past 18 months, as aggressive adoption of artificial intelligence and sweeping corporate restructuring reorder the country's internet industry. A report by the Sri Lanka-based Daily Mirror has criticised the Chinese Communist Party (CPC) for maintaining silence over the scale of the disruption, even as corporate profits continue to rise.
Scale of the Cuts
Alibaba, Tencent, ByteDance, Meituan, and Baidu have all announced significant workforce reductions, with some divisions — particularly in travel, content, and e-commerce support — reporting cuts of between 30 per cent and 50 per cent. Alibaba's headcount has fallen from approximately 1,94,000 to 1,28,000, a decline of roughly 34 per cent. Baidu has cut nearly 10,000 employees, while JD.com is reportedly planning an additional 12,000 job cuts.
Profit-Driven, Not Survival-Driven
What distinguishes this wave of layoffs from previous downturns, according to the report, is that it is occurring against a backdrop of growing profitability. '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 observed. Companies have framed the cuts as part of a deliberate pivot toward AI-driven products and services rather than a response to financial distress.
Beijing's AI Ambitions and Worker Risk
The layoffs align with Beijing's 'AI Plus Action Plan', which targets 70 per cent AI penetration in key industries by 2027 and 90 per cent by 2030. Tools such as Alibaba's Wukong platform are designed to automate entire departments, with the company promising 'one-person company' capabilities spanning e-commerce, live streaming, and software development. Experts cited in the report estimate that roughly 70 million jobs — approximately 9.6 per cent of China's total workforce — are at high risk of being displaced by AI, with younger workers disproportionately exposed.
The Human Cost: Age Ceilings and Younger Workers
An unofficial '35-year ceiling' has reportedly emerged in China's tech sector, with workers in their mid-30s — often carrying mortgages and family responsibilities — being dismissed in large numbers, according to the report. Younger employees have not been spared either. A 26-year-old ByteDance employee, laid off after six years in content operations, was quoted as saying that while the company's name once carried prestige, the reality was 'relentless overtime and crushing competition,' and that even a big-tech brand on a résumé now offers 'little protection.'
Government Stance Under Scrutiny
The report alleges that rather than introducing worker protection or retraining policies, the Chinese government has chosen to celebrate automation as a marker of national progress. Critics argue this posture leaves tens of millions of workers without a safety net as the AI transition accelerates. This comes amid a broader global debate over whether governments are moving fast enough to cushion the labour market impact of AI adoption — a conversation that is particularly acute in China given the sheer scale of its manufacturing and services workforce.
Point of View
But an unofficial age ceiling at 35 — in a country with a shrinking working-age population and a property-debt crisis — is a combustible combination that no amount of AI optimism can easily absorb.
NationPress
9 Jul 2026
Frequently Asked Questions
Which Chinese tech companies have cut the most jobs?
Alibaba leads the cuts, with its headcount falling from approximately 1,94,000 to 1,28,000 — a reduction of around 34 per cent. Baidu has cut nearly 10,000 employees, and JD.com is reportedly planning around 12,000 further job cuts. Tencent, ByteDance, and Meituan have also announced significant reductions, particularly in travel, content, and e-commerce support divisions.
Why are China's tech companies cutting jobs if profits are growing?
According to a report by the Daily Mirror, companies are cutting staff not to survive financial pressure but to 'optimise' — replacing human labour with AI-driven tools and platforms. This marks a departure from past layoff cycles, which were typically triggered by revenue downturns.
What is Beijing's AI Plus Action Plan?
Beijing's AI Plus Action Plan is a government initiative targeting 70 per cent AI penetration in key industries by 2027 and 90 per cent by 2030. It has accelerated corporate adoption of automation tools, including Alibaba's Wukong platform, which promises to automate entire departments.
How many Chinese workers are at risk from AI displacement?
Experts cited in the report estimate that roughly 70 million jobs — approximately 9.6 per cent of China's total workforce — are at high risk of being replaced by AI. Younger workers and those in their mid-30s are reportedly facing the greatest exposure.
What is the '35-year ceiling' in China's tech sector?
The '35-year ceiling' refers to an unofficial but widely reported phenomenon in which Chinese tech companies are dismissing workers in their mid-30s at disproportionate rates. These workers — often with mortgages and family obligations — are being let go as companies restructure around leaner, AI-augmented teams, according to the report.
