We already heard the stories about Taiwanese factory owners in Guangdong who left their close-to bankrupt enterprises over the wall that was designed to keep people out. But for larger companies like Foxconn such a fast departure is not that easy.
Foxconn has been in the middle of quite some brawls, mostly not very positive for the producer of Apple’s iPods and many other electronic devices.
Now the Chinese media report, here summarized by CSR-news, that Foxconn is trying to phase itself out by covert cuts of its staff.
In late October, Foxconn denied a rumor that it would cut 100,000 staff on the Chinese mainland and said that each of its factories was running normally. Later, a representative of Foxconn’s media office also told the local media that the company did not have any plans for of cutting staff. However, many of Foxconn’s employees said that the company had begun reducing staff in a disguised way by limiting employees’ overtime and putting forward a plan of stopping paying salary but keeping the position open for some of the employees.
Foxconn is expected to cut its staff with up to 20 percent by the end of the year. And still, it does seem to think it can get away with ignoring legal realities in China, as it did in the past.
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