Meituan, Baidu, and Xiaomi are reducing their workforces while accelerating artificial intelligence adoption. These firms use discreet methods like natural attrition and reduced graduate hiring to avoid government scrutiny. Chinese labor laws require official approval for significant job cuts, prompting companies to let contractor agreements expire quietly.
The workforce adjustments align with Beijing’s AI Plus initiative to increase industrial productivity. Employees report rising anxiety over being optimized, a corporate euphemism for layoffs. Tech workers increasingly fear that AI systems will permanently replace their roles.