Taiwan Snack Giant Chairman Warns of Crisis, Threatens Job Cuts

Want Want China Holdings Ltd. is facing a significant business crisis, with its chairman, Tsai Eng-men, warning employees of plunging profits and threatening job cuts for underperformers. The company reported a 38% drop in first-quarter profit and a 6% decrease in revenue, largely due to shifting consumer tastes towards healthier options and increased operational costs.

In an internal letter, Tsai acknowledged that the company had relied on a few "star products" for nearly 30 years without sufficient innovation, leading to customer loss and declining profits. He emphasized the need for strict cost control and warned that employees without tangible contributions would be eliminated.

The company's performance has sparked public discussion, with consumers expressing nostalgia for Want Want products but also calling for reduced sugar content. A trending hashtag on Weibo criticized the company's sugar levels. In response, Tsai's son and COO, Tsai Wang-chia, stated that the company listens to consumer feedback and is committed to innovation. Want Want also highlighted its existing sugar-free and low-sugar product offerings.