Physix Frontier · News Briefing Card (Hacker News · Oct 28, 2026)

Lao Gan Ma faces backlash over AI-driven layoffs

KEY FACTS

Lao Gan Ma executive Li Xin said that after an AI chili-pepper inspection system was introduced on one production line, the worker count fell from over 600 to 48.
Li Xin said the company's 2025 revenue reached 5.4 billion yuan, a record high, and that AI brought production error close to zero.
Lao Gan Ma's human resources department responded that Li Xin's remarks did not mention headcount figures.
Corporate information platforms show Lao Gan Ma's insured employee count fell from nearly 3,000 in 2022 to 740 in 2025.
A related Weibo topic has drawn over 120 million views, with some users calling for a boycott of the brand.

KEY DATA

from over 600 to 48Workers per production line

5.4 billion yuan (about $810 million)2025 revenue

from nearly 3,000 (2022) to 740 (2025)Insured employee count

over 120 millionWeibo topic views

PHYSIX OBSERVATION

AI job displacement has gone from prediction to verifiable numbers, and Lao Gan Ma has walked straight into public anger. The sharp drop in insured headcount cannot be attributed directly to AI, but the company's denial clashing with the data weakens its credibility. The State Council has just issued a document calling for cautious deployment and a transition period, showing policymakers already recognize the tension between efficiency and employment; transparent communication matters more to companies than after-the-fact denials.

Source: Hacker News report