Foxconn has had a rough few months with a spate of negative publicity followed by announcements to increase wages of employees by as much as two-thirds – so much so that the company is now feeling the pinch from shareholders to find ways to cut costs.
Consequently, it is now being reported that Foxconn, also known as Hon Hai Precision tools may be moving their production units to other parts of China where the costs are lower. The cities being touted to replace the company’s massive unit in Shenzen are Tianjin, Yantai or Wuhan.
No massive layoffs are speculated and the employees are expected to be relocated. However, it is being reported that several employees are contemplating a move to another factory to stay back in Shenzhen.[via China Daily]