Chinese companies are deploying 'quiet' layoffs as they adopt artificial intelligence (AI). This was reported by Qazaqyia.kz citing Reuters.
As Beijing actively promotes AI adoption, Chinese corporations are implementing 'quiet' layoffs by gradually reducing their workforce without mass firings. This approach is carried out without obvious signs of job cuts, causing concern among employees.
According to Reuters, this trend is linked to China's economic shift towards AI technologies. Companies are implementing AI systems to reduce costs and increase efficiency, leading to a reduction in traditional jobs. However, layoffs are not officially announced as companies try to avoid social instability.
The 'quiet' layoff method includes creating conditions for voluntary resignations, halting new hires, and not renewing temporary contracts. This approach allows companies to avoid social and legal consequences associated with layoffs.
Experts say the widespread adoption of AI could lead to significant changes in China's labor market. While Beijing supports technological innovation and economic modernization, job cuts may increase social tensions.