Extreme multi-label text classification (XMTC) is a task for tagging a given text with the most relevant labels from an extremely large label set. We propose a novel deep learning method called APLC-XLNet. Our approach fine-tunes the recently released generalized autoregressive pretrained model (XLNet) to learn a dense representation for the input text. We propose Adaptive Probabilistic Label Clusters (APLC) to approximate the cross entropy loss by exploiting the unbalanced label distribution to form clusters that explicitly reduce the computational time. Our experiments, carried out on five benchmark datasets, show that our approach significantly outperforms existing state-of-the-art methods. Our source code is available publicly at https://github.com/huiyegit/APLC_XLNet.