China, India shed over 130,000 tech jobs in AI-driven shift

A sweeping wave of AI-driven job cuts is reshaping the technology workforces of Asia's two largest economies, with China's internet giants quietly eliminating more than 130,000 positions and India's IT sector bracing for tens of thousands of "silent layoffs" as companies prioritize automation over headcount.

China's Quiet Downsizing

China's biggest technology employers — Alibaba ↗ 11.05%, Tencent, ByteDance, Meituan, and Baidu ↗ 4.93% — have collectively cut more than 130,000 jobs, with some divisions reporting reductions of 30% to 50%, according to reports from Rest of World and other outlets. Unlike the headline-grabbing layoffs common in Silicon Valley, Chinese firms have largely relied on "stealth" tactics — forced reassignments, manufactured performance issues, and frozen promotions — to pressure employees into resigning without triggering regulatory scrutiny.reuters+4

Alibaba's workforce shrank by roughly 34% over the course of 2025, falling from 194,320 to 128,197, driven largely by divestitures and an aggressive pivot to AI. Baidu's headcount declined nearly 7% in the same period. Reuters reported in June that a growing number of Chinese enterprises are implementing small-scale layoffs as they pursue AI-linked productivity gains, with workers across tech, entertainment, and advertising affected.restofworld+3

A Citibank report has added urgency to these developments, estimating that 9.6% of all Chinese jobs — roughly 70 million positions — are at high risk of AI-driven displacement, a figure that rises to 13.6% for workers in their twenties. In response, China's Ministry of Human Resources and Social Security announced in January 2026 that it would develop an AI employment impact monitoring system.thenextweb+3

India's Silent Layoffs

India's $315 billion IT services sector is undergoing a parallel transformation. Staffing firm TeamLease estimates that between 10,000 and 15,000 technology professionals had already lost jobs through silent layoffs by May 2026, projecting total losses of 25,000 to 35,000 for the calendar year, according to the Economic Times. CIEL HR Services put current losses at approximately 12,000, with full-year totals expected between 18,000 and 21,000.timesofindia.indiatimes

Unlike the formal announcements that marked earlier rounds — Tata Consultancy Services and Accenture ↘ 3.48% publicly cut more than 23,000 roles in 2025 — the current wave is largely taking place through quiet exits tied to performance reviews and skill assessments. India ranks as the second-most affected country globally by AI-related tech layoffs in 2026, behind only the United States, according to tracking site Layoffs.fyi.etvbharat+2

A Paradox of Displacement and Demand

Despite the cuts, demand for AI talent is surging in both countries. In India, hiring for AI-specific roles grew 16% year-over-year even as overall IT recruitment declined 3%, according to data from Naukri.com. NASSCOM projects the Indian tech sector will still add a net 135,000 jobs in the current fiscal year, bringing total industry employment to nearly 6 million.etvbharat

"The workforce reductions we are seeing are mainly due to companies reshaping how they operate," said Aditya Narayan Mishra, managing director and chief executive of CIEL HR, describing the trend as "workforce realignment rather than a broad-based decline in employment".timesofindia.indiatimes