Taipei, Nov. 24 (CNA) Terry Gou, chairman of Taiwan-based manufacturing giant Hon Hai Precision Industry Co., said Saturday that his company has no plans for massive layoffs amid media reports about a deep cut in its workforce.
According to Gou, sales growth momentum of Hon Hai, known as Foxconn in the global market and an iPhone assembler, remained sound, and the company expects revenue to grow into January next year.
A Nikkei Asian Review report said Friday that Hon Hai is cutting up to 100,000 jobs "to prepare for an expected downturn in 2019."
"Hon Hai is reviewing its expenses plan and such a review is a regular annual move," Gou told the press after he cast his votes for Saturday's nine-in-one local government elections and referendums at a polling station in Taipei.
He said the latest expense review will be a comprehensive one, aimed at helping Hon Hai facilitate its business restructuring.
"But Hon Hai has no plans for massive layoffs," he said.
Under the ongoing cost review, Hon Hai will send many of its employees to an industrial Internet academy set up by the company for training to face upcoming challenges arising from a fast-changing market.
Gou said that not only Hon Hai, the parent company, is reviewing its spending plan, but also its subsidiaries, including Osaka-based Sharp Corp. and Taiwan's flat panel maker Innolux Corp., are doing the same thing.
On Thursday, a Bloomberg report said Hon Hai is "the latest Apple Inc. supplier to warn of anemic demand."
Citing an internal Hon Hai memo, the report said the Taiwanese manufacturing giant is planning to cut costs by 20 billion Chinese yuan (US$2.88 billion) next year due to expected stiff competition.
The report said Hon Hai is aiming to reduce spending on its iPhone assembly operations by 6 billion Chinese yuan in 2019 and cut its non-technical workforce by 10 percent.
Hon Hai currently runs a broad production base in China, employing about 1 million workers there to manufacture devices for Apple and other international brands.
Responding to the Bloomberg report, Hon Hai issued a statement Thursday, confirming that it has a cost plan review, but said the company is committed to increasing its spending on research and development of new technology.
