The quiet layoffs China's tech giants (restofworld.org)

Chinese tech giants, including Alibaba, Baidu, and BYD, are implementing significant layoffs, mirroring trends seen in Silicon Valley. In 2025, Alibaba reduced its workforce by 34%, while Baidu and BYD cut their staff by nearly 7% and 10%, respectively. These job reductions are primarily responses to broader economic pressures such as a slowing economy and weak consumer demand rather than a direct consequence of AI-driven transformations, as suggested by experts. The layoffs are seen as necessary corrections following years of rapid hiring during the internet boom. Despite these cuts, companies are strategically hiring in areas related to artificial intelligence and cloud infrastructure. For instance, BYD has increased its R&D hiring by nearly 5%, and Tencent reported modest growth in headcount. This reflects a dual approach where firms are reallocating resources towards AI-related roles while managing workforce reductions in less critical areas. Analysts indicate that while AI is reshaping job dynamics, its impact on the overall labor market remains fragmented, as many companies are still adjusting to the new technology landscape. Moreover, the Chinese government emphasizes the need to balance workforce adjustments with social responsibility to maintain economic stability and employment levels.