Summary of Key Points
Around June 30th, industries such as the internet and automotive manufacturing have seen a wave of layoffs. Unlike in the past, the primary reason for these layoffs is not just the traditional need to cut unperforming business units or replace employees with cheaper new hires during the graduation season. The more significant factor is that AI technology has truly begun to compete for jobs. Companies are using AI to replace a large number of repetitive tasks, shifting from a strategy of "hiring more staff to gain a competitive edge" to one of "reducing staff and investing in AI." Non-creative positions have become the hardest-hit areas.
Why June 30th Became a "Layoff Disaster"? Three Pressures Driving Employees Out
June is the time when companies submit their semi-annual financial reports, and three factors have converged to cause a surge in layoffs:
1. Cutting Unperforming Business Units: Listed companies need to report on their performance for the first half of the year, and any unprofitable divisions are directly eliminated, resulting in job losses (for example, Alibaba cut staff in operations and sales departments due to poor performance).
2. KPI Reviews: Large companies conduct the most stringent mid-year evaluations, and teams with misaligned strategies or poor results are downsized (Meituan laid off many in its product development department because projects failed to meet expectations).
3. Graduation Season: Companies hire new graduates at lower costs to replace existing staff (a common practice each June, but this year it has been exacerbated by the impact of AI).
Companies also need to comply with regulations requiring them to report layoffs exceeding 20% in detail, which has led to phased layoffs and spread panic on social media platforms.
Internet Companies Laying Off Staff for AI Replacement, Automotive Manufacturers Cutting Excess Capacity: Different Reasons for Different Industries
The layoffs are not uniform across all industries:
- Internet Companies: AI is directly replacing human jobs. For instance, Oracle laid off 21,000 employees and spent 12.4 billion yuan on AI initiatives, yet its net profit increased by 19%—because AI is more efficient in the long run. Meta cut 8,000 jobs while closing 6,000 positions, as it no longer needed new hires to perform basic tasks like coding and data analysis.
- Automotive Manufacturers: They are reducing production capacity (e.g., Volkswagen cutting 3 million units and closing a factory in Germany) due to declining sales. Lucid, a new entrant in the automotive industry, is laying off employees to cut costs and improve efficiency; it has also shifted its focus from car manufacturing to smart home technology as part of a strategic adjustment.
- Varied Compensation Packages: Companies like Microsoft China offer N+7 months' salary as compensation, while others (e.g., Mercedes-Benz in Beijing) offer N+6 months' salary—variations depend on the company's financial strength.
AI Competing for Jobs Is Not a Future Trend; It’s Already Happening
Previously, concerns about AI replacing jobs were seen as exaggerated, but now it’s a reality:
- Official Recognition: Oracle was one of the first companies to openly acknowledge that AI is replacing human labor in its official documents.
- Real-Life Cases: Mr. Zhou from Hangzhou worked in AI quality inspection for a monthly salary of 25,000 yuan, but when AI learned his tasks, he was laid off. Ironically, his previous role was to help AI improve its capabilities, only for him to be replaced by the technology.
- Disappearing Job Barriers: Tasks that once required basic coding or data management skills are now easily handled by AI tools like ChatGPT, making these positions vulnerable to layoffs.
Which Jobs Are Most at Risk? Avoid Those That Can Be Done by AI
The jobs affected by these layoffs share a common characteristic: they involve mechanical repetition and require no creativity. Examples include:
- Basic coding and data processing;
- Routine maintenance and customer service quality control;
- Supportive roles that were created to prepare for the potential impact of AI (e.g., "reserve talent" programs).
Jobs that are less likely to be affected by AI include those that require strategic decision-making, emotional understanding (e.g., sales), and innovative integration of different technologies (e.g., combining AI with industry-specific applications).
What Should Ordinary People Do? Don’t Compete with Machines in Efficiency; Develop Skills That AI Can’t Learn
AI replacement is an inevitable trend, but there are ways to adapt:
1. Avoid Repetitive Work: If your job involves following set procedures, learn new skills quickly.
2. Enhance Core Abilities: Develop skills that AI lacks, such as interpersonal skills (negotiation, communication), innovative thinking (using AI to solve problems), and cross-industry integration.
3. Embrace AI: Use AI as a tool rather than fearing it. For example, use AI to draft initial documents and then refine them manually to improve efficiency and reduce the risk of being replaced.
In short, focus on tasks that only humans can perform.
This wave of layoffs is not accidental; it’s the inevitable result of the implementation of AI technology. For individuals, the key is not to fear AI but to learn how to coexist with it—letting AI handle the routine tasks and using your skills for more complex, creative work. Otherwise, you might avoid layoffs this time, but not the next wave of automation.