(Yicai Global) June 24 -- Hon Hai Precision Industry Co., trading as Foxconn Technology Group, will close some of Sharp Corp.'s redundant and inefficient overseas operations, CEO Terry Gou announced at the Foxconn annual shareholder meeting yesterday.
The world's largest electronics contract manufacturer bought a majority stake in the Japanese electronics giant for USD3.5 billion in March.
"Sharp has too many arms, thus overheads and other expenses are too high," said Mr. Gou.
When Foxconn took over Sharp, Mr. Gou promised not to cut staff, but Vice President Dai Zhengwu has disclosed that around 7,000 employees will be laid off globally as Sharp undergoes restructuring.
Foxconn's net profits were down 9.2 percent in the first quarter year-on-year to NTD27.58 billion (USD861.89 million). The drop in performance is mainly due to slowing growth in the global smartphone market. Foxconn is a major supplier to Apple Inc. and other well-known smartphone brands.