Lao Gan Ma denies layoffs as AI automation sparks labour concerns

Chinese condiment manufacturer Lao Gan Ma is defending its use of artificial intelligence after reports indicated a dramatic reduction in its workforce following the implementation of automated systems. According to industry observers, the number of workers involved in sorting chilli peppers at the company's facilities fell from 600 to 48 following the deployment of the AI technology.

The company has denied conducting mass layoffs, though it has not provided detailed explanations regarding the significant workforce reduction. The apparent discrepancy has drawn attention from labour advocates and industry analysts monitoring automation trends in Asia's food manufacturing sector.

Lao Gan Ma, known internationally for its chilli sauce products, has long invested in modernizing its production processes. The shift towards automation reflects broader industry trends across Southeast and East Asia, where manufacturers increasingly adopt AI and robotics to reduce costs and improve efficiency.

The situation highlights growing tensions between technological advancement and employment in the region. Workers' groups and observers have flagged concerns about the social impact of rapid automation in labour-intensive industries, particularly in countries with large workforces dependent on manufacturing jobs.