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

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. 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.GROWING UNEASE OVER AIThe dispute comes amid growing public unease in China over the impact of AI on employment, particularly in labour-intensive industries.Beijing has vowed to safeguard jobs and boost hiring as it seeks to accelerate AI adoption, as mounting economic, demographic and AI-driven pressures weigh heavily on the country’s labour market.On the Sina Weibo microblogging site, debate erupted over the impact of AI on jobs - with some users accusing the company of prioritising profits over workers’ livelihoods."This is so ironic coming from a company that has benefited greatly from working-class people," said a Weibo user going by the handle Black Dragon. "It is purely unethical."One hashtag attracted more than 120 million views as of Wednesday, with some users threatening to boycott Lao Gan Ma products."If you lay off workers, we will pull products from the shelves," wrote a Weibo user by the handle Xin Ma28.While some defended the company's adoption of AI, saying that automation was a "necessary part of industrial modernisation" that could "improve food safety, quality and productivity", others questioned the wider consequences of replacing human workers with machines."If everything is done by AI and robots, and people have no jobs or income, they won’t be able to afford to consume," read one highly upvoted Weibo comment. "What’s the point of producing so much, then?"