Chinese speech-recognition and AI firm iFlytek has moved quickly to quash online rumours that it is planning large-scale layoffs, including claims that roughly 1,500 positions would be cut and that severance would be paid at an unusually low “0.6N” rate. The company’s public relations vice-president, Han Yuchen, publicly labelled the reports as fabrications and said the stories were untrue.
The denial comes amid a backdrop of robust operating results. iFlytek’s guidance for 2025 forecasts net profit between RMB 785 million and RMB 950 million, a year-on-year rise of 40–70 percent, while operating cash flow has for the first time topped RMB 3 billion, a record for the company. Management also reported R&D spending growing by more than 20 percent and tax payments exceeding RMB 1.6 billion, underscoring continued commercial activity.
iFlytek attributes its performance to the scale-up of artificial-intelligence applications and participation in major national projects. The company said it expects roughly RMB 300 million in government grants related to state projects, an amount already accounted for as non-recurring income, which helps explain part of the unusually strong headline numbers for the period.
The episode matters beyond the immediate dispute over headcount. China’s technology sector has been sensitive to workforce rumours since the tech downturn that began in 2021, and allegations of steep cuts can quickly unsettle employees, customers and investors. For iFlytek, which relies on highly skilled AI and software talent, public denial is as much about protecting recruitment and retention as it is about protecting its market valuation.
Looking ahead, the substance of iFlytek’s financials presents a mixed but cautiously positive picture. Strong cash flow and rising R&D suggest the company is converting AI demand into revenue, while the inclusion of government grants and the one-off nature of some gains mean analysts will want to see sustained margins and organic growth in coming quarters. For international observers, iFlytek’s trajectory offers a window into how Chinese AI champions are balancing commercialisation, state collaboration and workforce stability.