Fri, Jul 06, 2018 - Page 12 News List

Hon Hai chairman Gou rebuts reports of layoffs

By Ted Chen  /  Staff reporter

Hon Hai Precision Industry Co (鴻海精密) yesterday denied allegations that it is laying off staff at two of its plants in New Taipei City’s Tucheng District (土城).

Hon Hai, the world’s largest contract electronics manufacturer, said that it would not rehire a number of temporary workers whose contracts have expired, adding that none of its regular employees would be affected.

‘TIP-OFF’

The comments came after the Chinese-language Apple Daily reported that it was tipped off by a reader that between 15 and 17 temporary employees were told to pack up and leave as Hon Hai adjusts its production capacity due to falling orders.

The New Taipei City Labor Affairs Department said that Hon Hai has pledged to provide the affected workers with severance compensation that is more generous than what is legally required.

At the company’s annual general meeting last month, Hon Hai chairman Terry Gou (郭台銘) outlined the company’s plan to cut its assembly-line workers across the globe by 80 percent in the next five years, as it moves to adopt automation and smart manufacturing technologies.

Gou also promised to avoid layoffs, saying the company would hire more people in the fields of artificial intelligence and the Internet of Things.

LAYOFF LIST?

In related news, the Chinese-language Next Magazine (壹週刊) yesterday also reported that Gou has personally signed off orders to lay off 340,000 workers by June next year.

Gou has instructed company executives to prepare a layoff list to meet the target of cutting the headcount of each major business unit by 3 percent, the magazine said.

The layoff list for the first wave of job cuts was completed at the end of last month, which would affect about 20,000 employees, the report said.

Hon Hai’s employees numbered about 690,000 as of the end of last month, and the downsizing would save the company 51 billion yuan (US$7.68 billion) in annual payroll expenses, according to estimates by Next Magazine.

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