Artificial intelligence (AI) tools such as OpenClaw are transforming workplaces across China, helping companies boost productivity but also quietly reducing their reliance on human workers, a report has said. These layoffs put businesses on a collision course with Chinese government efforts to protect jobs and maintain social stability.According to a report by news agency Reuters, several Chinese companies have been laying off staff in smaller numbers as the companies have begun using OpenClaw and other AI-powered systems to automate tasks previously performed by employees. OpenAI CEO Sam Altman hired developer Peter Steinberger and his open-source AI agent project, OpenClaw (formerly Clawdbot) for millions in a talent grab.
What Chinese tech workers are saying
While the layoffs are often small and spread out over time, workers from industries including technology, advertising and entertainment say AI adoption is already leading to job losses and reduced hiring, the report said.A 26-year-old contractor working for a major Chinese internet company in Hangzhou claims that her employer started cutting contract workers earlier this year after introducing AI tools such as OpenClaw. The company has also reportedly slowed graduate recruitment.“The tasks most people do can be completely replaced by OpenClaw,” Liu told Reuters, adding that employees who document their workflows for the AI system risk making themselves redundant.
China backs no job cuts due to AI
This highlights a unique challenge for Chinese companies because Beijing has aggressively promoted AI development as a key driver of economic growth, but it has also sought to prevent large-scale job losses that could threaten social stability. Chinese labor laws require government approval for workforce reductions exceeding 10% of a company’s staff, and courts have repeatedly ruled against firms that dismiss workers solely to replace them with AI.A recent ruling by the Hangzhou Intermediate People’s Court said that an AI company acted unlawfully when it terminated a senior employee after AI systems took over many of his responsibilities. Judges ruled that replacing workers with AI does not qualify as a “major change in objective circumstances” under China’s labor laws and therefore cannot be used as a justification for ending employment contracts.