Foxconn Denies Layoff Rumors, Says It Plans to Hire 50,000 in First Quarter
Li Na
DATE:  Jan 23 2019
/ SOURCE:  yicai
Foxconn Denies Layoff Rumors, Says It Plans to Hire 50,000 in First Quarter Foxconn Denies Layoff Rumors, Says It Plans to Hire 50,000 in First Quarter

(Yicai Global) Jan. 23 -- Foxconn has rejected speculation that the world's largest iPhone assembler has let 50,000 workers go, saying it plans to recruit more than 50,000 for its China factories in the first quarter of this year.

Officially known as Hon Hai Precision Industry, the biggest contract electronics manufacturer will adjust the headcount at its mainland plants as part of regular changes in line with the firm's global positioning and to meet demand from clients, the Taiwan-based company told Yicai Global.

Foxconn was responding to rumors that it has laid off 50,000 staff at its Zhengzhou facility in Henan province since last October due to lower-than-expected demand for Apple's iPhones. Apple's second-largest contract manufacturer Pegatron began to shed workers last November amid waning demand, while other suppliers have begun dismissing employees earlier than they used to do.

Apple Chief Executive Tim Cook cut his company's quarterly revenue forecast on Jan. 2, saying a slowdown in China's economy was crimping sales of its handsets in the country.

Foxconn employs about one million workers around China, of which about one-fifth are located at its Shenzhen plant in the coastal province of Guangdong.

The company aims to cut CNY20 billion (USD2.9 billion) in expenditure this year, including CNY6 billion from its iPhone business, with plans to lay off around 10 percent of non-technical staff, according to a previous statement from the firm.

"Foxconn makes expenditure budgets every year, but actual expenses may differ from what is spent," a Foxconn insider told Yicai Global.

Third-quarter earnings failed to meet market expectations despite an 18.3 percent gain in net profit to TWD24.9 billion (USD800 million) from a year earlier. Foxconn is facing greater risks as the popularity of Apple's products declines.

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Keywords:   Layoff Speculation,Foxconn,iPhone