Recently, the Want Want Group faces multiple challenges. According to Caixin, the group has launched a layoff plan; a departing employee revealed the company aims to cut about 1,000 people, with 400 already let go. Another departing employee said their department plans to optimize 8% of staff, meaning nearly 20 may face layoffs. As of publication, Want Want had not responded.
Meanwhile, an all-staff reflection is underway inside Want Want. Several employees mentioned this is the first time the company has required all employees to write self-assessment reports because of a sharp net-profit decline. Specifically, all headquarters staff must conduct a review of 'truly know yourself, earnestly reflect on yourself' around the past year's actual results, except the top unit heads. Oriental Finance reported the review form has two parts — employee self-rating and supervisor scoring — out of 100 points.
Internal emails show the move is because first-quarter fiscal-2026 results and profit missed expectations. In a letter to all employees, the chairman said this is a major operating crisis the company faces and requires high attention, earnest reflection, and active change. The email required all staff to fill the review form on August 20 and submit by August 21, with content that truthfully and objectively analyzes one's shortcomings, fact-based and data-supported, concise and bullet-pointed.
Behind these moves is Want Want's financial report. On July 26, China Want Want issued a profit warning: fiscal-2026 first-quarter revenue fell about 6% year on year and profit plummeted about 38%. The previous fiscal year, though revenue hit a record high, net profit fell 11.5% year on year. Rising raw-material costs, the channel shift toward low-margin discount and e-commerce, and stagnation of flagship products are the main reasons for the profit decline. Whether the layoffs, all-staff self-criticism, and an overnight official announcement of a sugar-reduction new product can translate into real performance remains to be seen.
