Foxconn plans layoffs - But how many?

Hon Hai Precision Industry – commonly know as Foxconn – has a workforce bigger than some countries armies. At about 1.3 million employees the company is well deserving of the word “Giant”. However, labour costs have more than doubled in China since 2010, and the company – without mentioning a time-frame or the target the reduction – told Reuters that it will reduce its workforce. Special assistant to the chairman and group spokesman Louis Woo told Reuters that the company has basically stabilized its workforce during the last three years, but when asked if the company had any plans to reduce the overall headcount he confirmed with a short “Yes”. What that simple "yes" implies is anyone's guess, but what we do know is that layoffs will occur.