(Yicai Global) July 31 -- Taiwanese contract electronics manufacturing giant Foxconn, known formally as Hon Hai Precision Industry, yesterday denied media reports that it will institute large-scale job cuts and shut down production lines, the Beijing News reported.

Though it dismissed the report as untrue, Foxconn said in a statement it will eliminate underperforming workers in accordance with its rules.

The company will cut 7,000 jobs in Taiwan in September and close the last production line of a key local factory, media reported.

Foxconn admitted it culls workers per its procedures every year, stressing that it does so to improve quality and operational efficiency, reduce costs and promote the company's long-term, stable growth.

The outsourced electronics maker has been pushing robots and robotic arms to save labor costs over the last several years and will provide new employment opportunities for workers replaced by machines, senior executives said.

Foxconn Industrial Internet, a spin off from Foxconn, listed on the A-share market earlier last month. Foxconn is a key contract manufacturer for US-based tech titan Apple.

Foxconn took flak for its labor practices when 18 workers attempted suicide -- 14 successfully -- in 2010 at its Longhua plant just outside Shenzhen where it makes Apple products.

Editor: Ben Armour