China Tech Giants Cut 1.3 Lakh Jobs Amid AI Shift: Report

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.

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"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.

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"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.

The 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.