Key facts
- Lao Gan Ma denies claims that AI replaced over 500 workers on its chili sorting line.
- The company's social insurance records show a drop from 2,912 employees in 2022 to 740 in 2025.
- Lao Gan Ma reported 2025 revenue of 5.4 billion yuan.
- An AI visual inspection system was implemented to reduce product defect rates.
Lao Gan Ma, a long-standing Chinese chili sauce brand, is embroiled in controversy after claims that its adoption of AI technology led to mass layoffs went viral on social media. The company has denied these claims, stating that the numbers cited for worker displacement are inaccurate. The controversy highlights growing public anxiety in China regarding the impact of artificial intelligence on employment and the perceived lack of empathy from companies prioritizing efficiency over human impact. Experts suggest that brands need to balance technological advancement with support for workers transitioning due to automation.