China’s Lao Gan Ma denies mass layoffs linked to AI amid public backlash - CNA

The iconic chilli oil maker faced online criticism after an executive reportedly said AI-powered technology had drastically reduced staffing on a production line.

File photo of Lao Gan Ma bottles on a shelf. (Photo: Wikimedia Commons/Wei Ji Xiao Ba Wang)

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BEIJING: Iconic Chinese chilli oil maker Lao Gan Ma has denied allegations that it replaced hundreds of factory jobs by adopting artificial intelligence-driven production, after reports of large-scale job cuts sparked outrage on social media.

Controversy erupted online after the company’s executive vice-president and chief quality officer Li Xin commented on the technology at a provincial government conference held in late September.

Li highlighted how AI had significantly reduced product defect rates and helped the company achieve a record-high revenue of 5.4 billion yuan (US$810 million) in 2025, according to state media reports.

He also reportedly said that the number of workers on one production line fell from over 600 to just 48 after the introduction of an AI-powered pepper inspection system last year.

CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less This triggered a wave of criticism online, with Chinese social media users accusing the company - which has long cultivated an image rooted in working-class origins - of prioritising profits and efficiency over workers’ livelihoods.

The company has since pushed back, claiming that reports were inaccurate.

Speaking to Chinese media outlets on Monday (Oct 26), a representative said that claims of mass layoffs were false.

The spokesperson confirmed the use of AI inspection technology but said that the production line had "never employed that many workers" to begin with.