AI & Layoff

Layoffs are hardly a new phenomenon. Every year, we hear news of large corporations "optimizing organizational structures" and cutting labor costs—it feels like an annual, fixed program. The standard reasons are always the same: economic downturns, industry transformation, shrinking markets, corporate restructuring, or the classic move to please investors and boost shareholder returns.

But since 2024, something has fundamentally changed. Companies are no longer being "forced to cut" people; they are "finally able to cut" them.

The arrival of AI has given corporate executives the perfect rationale to reduce their dependence on human labor. For many in the C-suite, this is a sigh of relief: "The day we've been waiting for is finally here."

In the past, AI was merely viewed as a tool to increase efficiency, meant to lighten the load on human workers. Today, AI is more than a tool—it is actively reshaping the entire workplace ecosystem and redefining the corporate need for "people." It's not just about saving labor costs; it’s about making the question of "Do we even need humans?" more real than ever before.

AI Makes Layoffs "The Logical Next Step"

In the past, the pain point for companies trimming staff was that, even if they wanted to save money, they still needed people to perform essential tasks. Customer service had to answer calls, finance had to audit accounts, marketing had to plan campaigns, and supply chains required human oversight. Companies had to maintain a "limit" on layoffs, otherwise, the operation would fail.

AI has utterly demolished that limit.

It can handle massive amounts of repetitive work faster, more accurately, and more efficiently than humans. It doesn't complain, doesn't take sick leave, doesn't change jobs, doesn't ask for a raise, and operates 24/7 without interruption. Corporate executives look at the data provided by AI, and their eyes light up: "Why do we still need so many people?"

Suddenly, layoffs have shifted from a "reluctant necessity" to the "most rational business decision." AI isn't making human work easier; it's allowing companies to drastically reduce their reliance on human beings. When AI can handle most tasks previously done by people, the demand for "human resources" plummets, fundamentally altering the basic structure of the entire labor market.

The AI Engine Driving the Global Layoff Wave

🇨🇳 China: Customer Service and Admin Jobs Vanish Faster Than Double 11 Logistics

Earlier this year, internal chat records from the parent company of Kans Group (Han Shu) were exposed, where CEO Lü Yixiong announced massive layoffs and the use of AI to replace staff. Customer service saw a staggering 95% reduction, with legal, new product R&D, and content innovation departments cutting staff by 50%-80%. Employees are expected to interact directly with AI, eliminating the need for keyboards altogether.

🇺🇸 US: If the Government Is Cutting Staff, What About the Rest of Us?

The Trump administration announced a plan for large-scale federal layoffs, projecting a cut of 100,000 civil servants, with Elon Musk spearheading a governmental reform to boost AI automation. Administrative, data processing, and clerical positions are being replaced, potentially saving the government $1 trillion—but what about the displaced workers?

🇩🇪 Europe: Automotive Workers Wake Up to an Automated Factory

German car manufacturers like Volkswagen, BMW, and Mercedes-Benz are rapidly accelerating automation. AI replacement rates are surging in supply chain management, manufacturing, customer service, sales, and logistics. The auto industry, once considered a "job for life," has become an early testbed for AI automation.

These layoffs are not just about saving money; they are a direct consequence of AI showing companies that many jobs simply no longer require a human touch.

"Employees Are Our Most Valuable Asset"? In the AI Era, That's Obsolete.

That classic management cliché, "Our employees are our most important asset," sounds profoundly ironic in the age of AI.

Management is now rigorously reassessing labor costs, and AI offers better value in every metric:

Employees require salaries; AI doesn't.

Employees need rest; AI doesn't tire.

Employees make mistakes; AI calculates precisely.

Employees leave; AI remains perpetually loyal.

When AI can substitute the majority of manual work, the corporate attitude is clear: "Cut what you can, slash what you must." This isn't necessarily corporate "coldness"; it's AI changing the very essence of "work." When a company can run most of its operations using AI, why would they need a vast human workforce?

Human vs. AI: Who Will Dominate the Workplace?

We used to worry about competitors being better than us; now, we worry about AI being stronger than us.

Which positions are most at risk?

High Risk: Customer service, administration, data entry, accounting—AI handles these easily. Their disappearance is only a matter of time.

Medium Risk: Journalists, marketing specialists, junior programmers, paralegals—AI is already capable of assisting or partially replacing human work.

Low Risk (For Now): Doctors, psychologists, senior lawyers, top-tier management—AI cannot replace these roles in the short term, but what about the future?

We once believed that if we worked hard and were skilled enough, a company couldn't afford to lose us. Now, the logic is brutally simple: If AI can do it, why should the company pay you?

AI Is Not the Enemy; It's Rewriting the Rules

Many people feel anger toward AI, believing it is "stealing" human jobs. However, a look back at history shows that technology, not AI itself, has always driven job cuts—AI has just accelerated the process. Handwritten documents were replaced by printers, manual assembly lines by robots, and film cameras by digital photography. AI is not the first technological revolution, nor will it be the last.

AI is not a simple tool; it is restructuring the entire job market. We transitioned from industrial automation to digitization, and now we are in the AI era, with more changes ahead. The real question isn't whether "AI is bad," but "Can you keep up with this era?"

If the AI era has already arrived, how should we respond? Resisting AI will not change reality; it won't disappear and will only become more powerful. Our only viable option is to learn how to master AI, making it our assistant, not our adversary.

Future work will not be a competition between people, but a collaboration between people and AI. By cultivating abilities AI cannot replace—like creativity, critical thinking, cross-disciplinary integration, and complex decision-making—we may still secure our place. More importantly, we must shift from being the "replaced" to being the "AI conductors."

The Future Belongs to the Adaptable: The Race Has Begun

AI is making layoffs more ruthless, but this doesn't mean the future is hopeless. The market won't stop because of our fear, and AI won't halt because of our opposition. But we can run faster, adapt to this new age, and even use AI to enhance our own competitiveness.

The race has already begun. The ultimate winners will not be those who refuse AI, but those who learn how to harness it.

This is a tsunami with a clear warning. Before the wave hits, the smartest thing to do is not panic, but to find high ground and prepare for self-rescue.