Rumor Control: Foxconn Is Not Laying Off 800,000 Chinese Workers

People are making a big deal about this report from Chinese news site ON.CC, in which they assert that the financial impact of Foxconn’s recent pay raises (a direct response to the dozen-odd suicides of workers this year) will cause the Taiwan-based contract manufacture to shutter its mainland China factories and lay-off up to 800,000 Chinese workers.

Uh, guys. Maybe we’re wrong, but didn’t we already talk about this? The ON.CC piece seems to be clearly referring to the recent shareholder meeting in which Foxconn announced plans to open a new automated facility in either Taiwan or Vietnam, and to offload some of the immediate work from its Chinese facilities to Vietnam as a counter-measure against the very worker stress that is prompting the Foxconn suicide problem.

Foxconn was explicit at that meeting that this was just workload lightening to give their Chinese workers a room to breathe. They’re not shuttering Shenzhen! They’re not laying off anyone… at least, in the immediate future. It’s just a badly translated Google page with a factually incorrect interpretation of what was discussed at the meeting. Or am I missing something here?

• Image NYT.”

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