Chinese courts rule AI replacement is not legal grounds for firing workers as global tech layoffs hit 78,000
Chinese courts in Hangzhou and Beijing have ruled in two separate cases that companies cannot fire workers simply to replace them with AI, establishing that AI adoption is a strategic business choice rather than an unforeseeable change in circumstances under China’s Labour Contract Law. The rulings arrive as 78,000 tech workers have been laid off globally in early 2026 with nearly half attributed to AI, and create a stark contrast with the US and EU, where no equivalent legal protection exists.
