Chinese microdrama producers cut staff and turn to AI
Hengdian World Studios, January 2025. Photo: N509FZ / Wikimedia Commons, CC BY-SA 4.0
The business model is changing for Chinese microdrama producers, who make short stories for viewing on phones. A report from Hengdian and Zhengzhou, published by Xiutai on Jiemian, describes how declining orders for live-action shoots are pushing companies towards layoffs and AI-generated video.
Deyu Film produced more than 400 live-action microdramas in 2025. According to its head, the company then employed over 200 people; after four rounds of cuts in 2026, around 30 remained. It moved from a large office to cheaper premises and is trying to retain the people needed to fulfil its remaining orders.
At Chengfengpolang Film, a partner said monthly live-action microdrama orders fell from more than 20 to around ten. In early April, the company shifted about 90% of its staff to AI production. Yet cheaper generation does not guarantee a profit: a finished series still needs to find an audience, and promotion also costs money.
These figures describe individual companies, not the entire Chinese market. The report chiefly documents a shift in work and expenditure: some tasks are moving from sets to computers, but producers still face the risk of failing to recoup their investment.
Sources: Xiutai / Jiemian, FindShortDrama, 02.11.2026
