Abstract: Much of the existing research on platform algorithms defaults to a preexisting labor order and a monolithic relationship of control and resistance in labor relations，and lacksattention to the transformation of labor order itself. This paper establishes an analytical framework that the role of algorithms is coupled with labor-capital concerns，exploring how ranking algorithms facilitate transformation in labor-capital relations in the case study of pay cut at the Y online education platform. Before the reduction，the ranking algorithm allocated course resources based on teaching excellence，effectively increasing both platform revenue and teacher income. The wage reduction was implemented in two phases. In the mild salary reduction phase，through algorithm iteration，course resources were covertly redirected towards lower-paid teachers，achieving cost reduction while maintaining stability. During the mandatory pay reduction phase，in response to teacher resistance，the sequencing algorithm was iterated again to allocate course resources based on accurate identification of teacher risk of non-compliance. Throughout this process，the platform shifted from concerns on development to the ones on control，and the role of the algorithm transitioned from enhancing efficiency to exerting control. Labor relations underwent two transformations，sequentially manifesting as autocratic pluralism cooperation，autocratic pseudo-pluralism cooperation，and critical perspective cooperation，with the degree of labor-capital cooperation gradually decreasing. This article summarizes the capability of algorithms to drive transformation in labor relations as “algorithmic reconstruction”. Based on their ability to efficiently allocate resources，algorithms can iteratively change the expected outputs，shift roles，and thus flexibly adjust the way of resource are deployed，and then efficiently adapt to and achieve different organizational goals，and ultimately lead to the transformation of labor relations. This finding helps to advance the study of the dynamics of labor relations. Furthermore，given their critical role，algorithms must be viewed as labor rules that should be subjected to multi-party supervision and negotiation in order to better safeguard the rights of platform workers.

Key words: transformation of labor-capital relations, algorithm reconstruction, labor-capital cooperation type, algorithm control, salary reduction incident