Foxconn denies Chinese staff lay-offs

Taiwan-based Foxconn Electronics, the largest manufacturer of electronics and computer components in the world, has denied rumours of 10,000 staff lay-offs in its China factories.

Foxconn spokesperson, Edmund Ding, said the company has not yet issued any official redundancy orders, and that current staffing levels are consistent with normal seasonal trends.

The denial follows a similar rebuttal last month when Foxconn refuted press rumours that it planned to axe 100,000 staff.

Departments across Foxconn are currently rethinking operations and implementing cost cutting measures to see the company through the global financial crisis.

According to Ding, however, employee numbers are unlikely to drop significantly.

High cost operations that are underperforming are likely to be cut, Ding said, but any staff lay-offs would be conducted according to labour laws in the country concerned.

Despite Ding’s reassurances, if Foxconn is serious about cutting costs it seems probable that a significant number of its employees will be made redundant in the near future.

Foxconn’s Chinese employees have noticed covert staff reduction practices, including cutting back on overtime, and plans to halt wage payments whilst allowing staff to continue working.

Two years ago, Foxconn was involved in a controversy over working conditions in a Chinese factory producing Apple iPods.

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