Chinese court rules companies can't fire workers just because AI is cheaper — ruling says automation alone doesn't justify layoffs

A Hangzhou court ruled that companies cannot fire workers solely because AI can do part of their jobs more cheaply.

Judges said the employer’s pay-cut reassignment was not a fair transfer and that the dismissal was unlawful.

The ruling signals that automation alone is not enough to justify layoffs in China.

It may push employers to retrain staff and handle restructuring with greater worker protections.