Chinese tech workers fear AI-driven layoffs as 'optimisation' takes on new meaning

Workers in China's tech sector are growing increasingly concerned about the potential of artificial intelligence taking over their jobs, particularly as firms such as Meituan, Baidu, and Xiaomi implement layoffs under the guise of 'optimisation' (youhua). In late June, rumors suggested that Meituan might reduce its product roles by as much as 50% by the month's end, alongside significant cuts in other areas. Although Meituan refuted these claims, employees have reported a subtle, ongoing reduction in workforce. Historically, 'optimisation' has been a term used to disguise layoffs in the tech industry, but it now suggests that jobs are being phased out due to AI capabilities. This anxiety reflects a wider trend among major technology companies in China, which have been downsizing recently.