Chinese companies are reportedly implementing “quiet” AI-driven layoffs to avoid labor regulations that can require additional scrutiny when workforce reductions exceed certain thresholds.
Like I said in my AI-first Cities Proposal:
It has become politically risky for businesses to lay off workers in order to replace them with Artificial Intelligence and humanoid robots.
This is yet another factor that businesses adopting AI must consider. It is one of the reasons why it is important for Tanzania to establish AI-first Cities. If citizens are not financially protected from the potential job displacement caused by AI adoption, social stability may be threatened.
Here, the Chinese government finds itself in a difficult position. It wants to promote the adoption of AI, but it is also concerned about the impact on social stability if AI adoption leads to large-scale unemployment.
My solution, as outlined in the AI-first Cities Proposal, is to make citizens shareholders in the economic gains created by AI-driven automation within the AI-first Cities. In other words, citizens become 50% owners of the AI-first Cities.
Under this model, 50% of the profits generated from taxes collected within the AI-first Cities would be paid to Tanzanians as a Universal Basic Income (UBI), or Sovereign Grant.
Click the link below to read the Reuters article:
Reuters article:
https://www.reuters.com/business/world-at-work/china-inc-deploys-quiet-layoffs-beijing-promotes-ai-adoption-2026-06-10/
Techmeme Permalink:
https://www.techmeme.com/260610/p58#a260610p58