According to Liu, she is unaware of the full scale of the layoffs, but her company has also begun reducing the hiring of new graduates as Chinese firms race to implement AI systems.
The 26-year-old Liu, who requested that neither her full name nor her company's name be disclosed due to the sensitivity of the issue, said:
"Most of the work people do can be completely handled by OpenClaw. Once someone inputs their entire workflow into OpenClaw, they can essentially be laid off."
Companies around the world are grappling with the challenge of adopting AI, but Chinese firms face a unique situation. Beijing wants companies to embrace AI quickly enough to deliver significant productivity gains, but not so rapidly or visibly that large numbers of workers become unemployed and social stability comes under threat.
Liu's company is among numerous Chinese businesses that are quietly reducing jobs on a limited scale while avoiding government scrutiny and attention, seeking to boost productivity through AI. Nine workers from sectors including technology, entertainment, and advertising confirmed this trend in interviews.
This approach differs from that of some major Western companies, such as Meta, which have announced large-scale AI-related layoffs, contributing to a growing public backlash against AI in the West.
China's State Council and Ministry of Human Resources did not immediately respond to requests for comment.
Under Chinese labor laws, companies seeking to dismiss more than 10 percent of their workforce must obtain government approval. Chinese courts have ruled against employers in at least three cases involving workers who were dismissed and replaced by AI systems.
A senior manager at a major Chinese fintech company told the media. ‘Private companies will have to tolerate a certain degree of inefficiency to avoid mass layoffs, because such layoffs could trigger social unrest and carry political consequences.’
According to the manager, restructuring is underway at nearly all major Chinese technology companies, while many marketing and front-end roles are increasingly being performed by AI.
An engineer from Alibaba's cloud division also revealed that workforce reductions linked to AI have already begun in some parts of the company. However, rather than large-scale layoffs at a single point in time, the cuts will occur gradually through attrition, workforce reductions, and by leaving naturally vacant positions unfilled.
The developments highlight China's delicate balancing act: accelerating AI adoption to strengthen productivity while preventing widespread job losses that could undermine social and economic stability.
