AI Layoffs in Asia: 7 Giants Reshape Jobs for an AI-First Future

“We’re not downsizing for cost, we’re restructuring for code.” That’s the unspoken message behind a new wave of job cuts sweeping across Asia. From Hong Kong to Singapore, influential Asian tech and service giants now drive AI layoffs—no longer just a Western phenomenon.

These aren’t just layoffs, they’re strategic resets. Automation now redefines or replaces traditional roles in support, marketing, logistics, and content creation. Companies aren’t trimming excess; they’re rebuilding for scale, speed, and intelligence.

Not Cost-Cutting, AI-Positioning

Unlike past cuts triggered by financial crises, the drivers today are structural and forward-looking:

• Automating repetitive tasks with AI chatbots, generative tools, and machine learning.
• Redesigning teams around AI-centric roles like prompt engineers and AI ops.
• Pivoting strategically to align with long-term tech roadmaps.

In Asia’s digital economy, where speed, cost-efficiency, and innovation are paramount, lagging in AI isn’t just a tech problem; it’s a competitive threat.

Who’s Cutting? 7 Major AI Layoff Cases in Asia

Here are seven companies across the region that reflect how the AI transition is playing out in real-time.

1. 16,000 Jobs Cut: Alibaba Drops Metaverse, Bets on AI

Based on reporting from The Straits Times, Alibaba cut 7% of its workforce—around 16,000 jobs—in early 2025 as part of a shift away from its Yuanjing metaverse division toward AI-focused operations in Shanghai and Hangzhou.

This follows a significant 20,000-person reduction in 2023, confirmed by Bloomberg, and a similar scale of cuts in 2022. By the end of 2023, Alibaba’s headcount had dropped to 219,260, down from nearly 240,000 the year before.

According to Tech in Asia, the layoffs were framed as an “efficiency move,” while the company continues selective metaverse development. The strategic pivot includes a ¥380 billion (US$52B) investment into AI and cloud infrastructure and aligns with a broader trend in Chinese tech: automation over experimentation.

Momentum shifted following a landmark meeting with President Xi Jinping, where Chairman Joe Tsai said Alibaba would begin rehiring—this time, with a focus on AI talent. As reported by Reuters, Tsai described it as a reboot of business confidence and hiring intent.

2. 4,000 Roles Phased Out: DBS Bets on AI Over Contractors

Based on reporting from the BBC, DBS Bank plans to cut approximately 4,000 contract and temporary positions—nearly half its flexible workforce—over the next three years, as AI replaces human-led project work across 19 markets.

The move affects up to 9,000 non-permanent staff, with no impact on full-time employees, and will occur through natural attrition, not layoffs. Outgoing CEO Piyush Gupta emphasized that the bank’s 800+ AI models already support 350 use cases, with an expected S$1 billion (US$745M) economic impact by 2025.

At the same time, DBS plans to create 1,000 new AI-related roles, underscoring a shift toward reskilling rather than pure reduction. Based on Gupta’s remarks, the bank’s AI-first strategy is reshaping operations in one of Asia’s most digitized banking institutions.

“AI could reduce the need to renew about 4,000 temporary/contract staff… as roles are completed,” a DBS spokesperson told the BBC.

With deputy CEO Tan Su Shan set to take over leadership, DBS stands as a regional bellwether for how AI adoption intersects with talent restructuring.

3. 1,000 Laid Off: Grab Cites AI and Cost Pressure

Based on a memo cited by Tempo.co, Grab laid off 1,000 employees—11% of its workforce—in mid-2023 in what CEO Anthony Tan called a “strategic reorganization,” not a cost-cutting shortcut.

Tan attributed the decision to the “breakneck speed” of generative AI, rising capital costs, and mounting pressure to deliver affordable services. While Grab had previously ruled out layoffs in late 2022, the company reversed course just months later—tightening hiring and freezing executive raises before making the cuts.

“Change has never been this fast. Generative AI is evolving at breakneck speed,” Tan wrote in the letter to staff.

AI drove the restructuring, as the timing and messaging show—even if not every role was directly displaced.The layoffs, Grab’s largest since the pandemic, signal a shift among Southeast Asia’s superapps toward AI-enabled efficiency in logistics, customer support, and backend operations.

Tan also emphasized that Grab remained on track for EBITDA breakeven, highlighting how the company had previously relied on organic cost controls before making this more aggressive move.

4. Up to 500 Cut in Malaysia: TikTok Automates Content Moderation

Based on reporting from Reuters, TikTok laid off hundreds of employees globally, including up to 500 staff in Malaysia, in late 2024 as part of a strategic shift toward AI-powered content moderation. Most of the affected roles were in trust and safety operations, previously handled by human moderators.

A TikTok spokesperson confirmed that several hundred roles were eliminated globally, stating the changes were intended to “strengthen our global operating model.” The company also noted that 80% of guideline-violating content is now flagged and removed using automated systems, underscoring the growing role of AI in its moderation workflow.

“We’re making these changes as part of our ongoing efforts to further strengthen our global operating model for content moderation,” TikTok said in a statement.

At the same time, TikTok Shop in Indonesia is reportedly planning mass layoffs by July 2025 following its merger with Tokopedia, according to IDN Financials. The restructuring is expected to halve the combined e-commerce workforce from around 5,000 to 2,500 employees, affecting logistics, warehousing, marketing, and operations teams.

While not all layoffs are directly linked to AI, the clear trend is toward leaner, tech-enabled operations, especially in markets under regulatory scrutiny like Malaysia and Indonesia.

5. Up to 50% Cut: Hang Seng Bank Restructures for AI Era

Based on reporting from The Standard, Hang Seng Bank has begun one of Asia’s most aggressive AI-driven restructurings, with layoffs ranging from 10% to 50% across multiple departments since March 2025. Affected functions include strategy, IT, and corporate communications, impacting both junior and senior staff.

“Once documents are input into machines, the entire process becomes automated… data entry to analysis tasks will no longer be needed,” said finance lawmaker Ronick Chan Chun-ying.

Surviving employees must reapply for their roles, competing with external candidates—a clear sign that AI is reshaping not just jobs, but hierarchies.

According to HR expert Felix Yip, this marks a cultural turning point: Hang Seng, once known for employee care, is now aligning with global efficiency trends. With only 2% GDP growth and rising global competition: Hong Kong firms cut costs and automate non-core functions to stay competitive.

“They must ‘look out for themselves’ by continuously learning new skills,” Yip added.

The bank is currently hiring for 85 AI-adjacent roles in marketing, data analysis, and customer service, indicating a reallocation rather than total reduction of talent. A spokesperson confirmed that the strategy focuses on upskilling and adapting to evolving customer needs.

These changes align with HSBC’s broader restructuring, including investment banking layoffs and a reorganization of core global business units.

6. 90% of Support Team Cut: Dukaan Embraces AI Overhead-Free

Based on reporting from CNN, Indian startup Dukaan laid off 90% of its customer support staff—a total of 23 roles—after building an AI chatbot that could handle queries 98% faster than humans, according to CEO Summit Shah.

The bot was developed in just two days by a single data scientist, cutting the cost of support operations by 85%. Shah called the decision “tough but necessary,” as AI cut wait times and boosted reliability during peak hours.

“Given the state of [the] economy, startups are prioritizing profitability over striving to become unicorns,” Shah tweeted.

Dukaan’s pivot to direct-to-consumer brands reduced the need for live support. Even lean startups are driving AI disruption, expanding its use into design and data while still hiring in tech and marketing.

7. 10% Cut in Asia-Pacific: Samsung Streamlines Amid AI Chip Race

Based on reporting from Korea JoongAng Daily, Samsung Electronics is laying off up to 10% of its Asia-Pacific workforce, affecting staff in Southeast Asia, Australia, and New Zealand as it pushes for greater AI and chip sector competitiveness.

A spokesperson framed the cuts as “routine workforce adjustments,” but industry observers note the timing aligns with growing internal pressure: Samsung is lagging in AI memory chips, with SK hynix securing Nvidia certification ahead of it.

The company is also facing labor unrest—including strikes in South Korea and protests in India—as it resists wage hikes amid falling share prices.

Samsung now aims to reclaim its edge in AI-enabled smartphones and high-bandwidth memory (HBM). Layoffs signal a deeper shift—automation and system-level integration are now key performance benchmarks, even without formal AI ties.

Why Now? Understanding the Shift Behind AI Layoffs in Asia

Investor Pressure Meets AI Opportunity

With tighter VC funding and market pressure, Asian companies adopt AI to boost strategic agility—not just to cut costs. AI has become the go-to metric for operational resilience and future readiness.

AI Tools Are Plug-and-Play Ready

From Tencent Cloud to regional startups using robotic process automation (RPA), the AI stack is mature and accessible. AI adoption has shifted from “build” to “buy and deploy,” cutting the need for traditional execution roles.

Asia’s Race to Stay Competitive

Governments across the region are backing AI adoption aggressively. AI layoffs in Asia stem from policy-driven digital transformation led by China’s AI strategy, Singapore’s governance, and Korea’s innovation subsidies.

Talent Is Being Rebalanced, Not Just Removed

Layoffs aren’t always terminal. Companies are reallocating teams toward AI-literate roles—like prompt engineering, AI ops, and governance—enabling internal transitions where possible. Firms that invest in upskilling now position themselves to adapt without mass disruption.

What Leaders in Asia Should Be Doing

If you’re a founder, CHRO, or digital transformation lead, this trend is a wake-up call. Here’s how to respond proactively:

• Communicate with Clarity: Let your teams know why changes are happening. Transparency builds trust, even during tough decisions.
• Invest in Reskilling, Now: Don’t wait until layoffs are necessary. Upskill teams in prompt writing, data literacy, and AI integration.
• Audit Roles for AI Compatibility: Identify which functions you can augment, evolve, or phase out.
• Build an AI Operating Framework: Structure your adoption roadmap—define sourcing, governance, and integration.

Final Thoughts: Asia’s AI Workforce Reset Has Begun

AI layoffs in Asia mark more than a workforce trim, they signal a strategic reset. From tech giants to lean startups, companies are replacing repeatable roles with AI and reinvesting in agility, data fluency, and design thinking.

This isn’t cost-cutting. It’s future-building. The most forward-looking firms aren’t reacting to AI, they’re reorganizing around it. And the ones that move fastest will define the next era of work.

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