China's Lao GAN Ma Takes the Heat for Alleged Layoffs Due to AI

Lao Gan Ma faced public scrutiny after domestic media reported that executive vice general manager Li Xin said an AI-powered pepper inspection system cut one production line's workforce from over 600 to 48 and credited AI with helping 2025 revenue reach a record 5.4 billion yuan ($810 million). The company's HR representatives said Li had not referenced staffing figures, but users cited corporate filings showing insured employees fell from nearly 3,000 in 2022 to 740 in 2025, and a Weibo hashtag drew more than 120 million views. The debate comes as China's State Council issued guidelines on Oct. 23 calling for maximizing AI's job-creating potential while slowing AI-related job replacement.