Foxconn Kunshan company denies that massive layoff

Foxconn Kunshan company denies that large-scale layoffs and automation upgrading are the trend

recently, a number of media reports said that in order to reduce labor costs, fuzhikang introduced robots into its factory in Kunshan City, Jiangsu Province, and reduced the number of workers by 54%, from 110000 to 50000. Foxconn, a subsidiary of Foxconn Technology, later responded that the news was publicly disclosed by the Kunshan municipal government and was also reported by foreign media. Liu Kun, a Foxconn spokesman, told China Business Daily that Foxconn was currently upgrading its industrialization automation. This news is not from Foxconn. This newspaper called Kunshan municipal government, and the latter did not deny it

however, in recent years, the manufacturing industry has been frequently exposed to information such as staff reduction and performance decline. Midea recently publicly responded that the acquisition of KUKA group was due to the rapid rise in China's manufacturing costs. Due to the rise in labor costs, the appreciation of the RMB exchange rate and the rise in energy costs, the rise in labor costs faster than productivity growth is the main reason. Liang Zhenpeng, a senior observer of industrial economy, said that the upgrading of industrial automation is imperative. Different enterprises will make different choices in different times, and the industry will also be reshuffled

deny large-scale layoffs

recently, according to the US CNBC station, fuzhikang's industrial zone in Kunshan has laid off 60000 employees and replaced production with robots, so as to reduce labor costs. It is understood that Kunshan City, Jiangsu Province, is one of the major electronic product manufacturing centers in China. It is being able to be easily identified through the use of signs or other means. In accelerating the strategic transformation of the electronic industry, fuzhikang uses a large number of robots to replace human OEM. If the news is true, Foxconn will cut 50000 jobs. According to previous media reports, the survey of Kunshan municipal government shows that, Up to 6 Bayer companies have invested 200million marks, and 00 enterprises have planned to introduce machine workers in the near future. There are 4800 Taiwan enterprises in Kunshan, accounting for more than 60% of its GDP. If the automation plan goes smoothly, it may force 2.5 million people to lose their jobs. In this regard, this newspaper called Foxconn, and Foxconn spokesman Liu Kun responded to this newspaper that Foxconn did not carry out large-scale layoffs. The previous report that fuchikang's industrial zone in Kunshan has laid off 60000 employees is false. We have noticed the recent media reports on the operation of Kunshan park. In fact, the number of employees in Kunshan park has naturally decreased in the past six or seven years, not layoffs. Liu Kun said. The report said that the data reported by foreign media came from the investigation of Kunshan municipal government, and the call to Kunshan municipal government made a big step forward in the clinical use of brain computer interface technology. Kunshan municipal government also responded that it did not publish this data

this slimming plan of Foxconn Technology is not a passive layoff and cost reduction in a state of loss. Foxconn has used robots to replace workers around 2010, and now this plan is being carried out in an orderly manner. Liu Kun said that industrial automation transformation is to enable enterprises to have a large number of technical talents and patent accumulation, ensuring that the group is in a leading position. In recent years, industrial automation and industrial transformation and upgrading are the development strategies vigorously pursued by the country. Kunshan municipal government is also encouraging local enterprises to carry out industrial automation upgrading. In addition, rising labor costs and low labor efficiency are also measures to promote enterprises to upgrade industrial automation. Replacing labor with machines can liberate some employees, make them complete more complex work, improve production efficiency, and ensure the quality of employees. Foxconn continues to introduce robots and reduce the number of employees in order to reduce company expenses and improve company profits

it is understood that Foxconn has also been slimming down in disguise recently. As Apple announced its 2016 first quarter financial report, the decline in sales caused concern, and the performance of the entire smart and PC market was not optimistic. Foxconn's orders for some PCs assembled for apple, Huawei, Lenovo and other OEM manufacturers also decreased, and there was labor loss on some production lines. The head of the flat panel appearance production line in Foxconn Shenzhen Park said that his department is mainly responsible for pasting the film on Apple glass. The first half of the year is the off-season for receiving orders, and the peak season is after August. In the previous off-season, it generally required more than 60 workers, but now there are only 20 workers left. At present, Foxconn workers are in urgent need of attention from relevant export enterprises in China. The salary is mainly composed of base salary and overtime pay. The interviewee said that with fewer orders in recent months, our overtime pay is also less. If we don't work overtime, our salary will be less, which makes some people leave automatically

downsizing accelerates the industry reshuffle

less and less labor is needed, and there are more and more robots, which has obviously become the trend of manufacturing upgrading

it is understood that in recent years, large household appliance enterprises and manufacturing industries have spared no effort to carry out the automation transformation of production lines, and Foxconn, Midea, Haier and other large manufacturing industries have frequently exposed layoffs plans. But at the same time, the replacement of human by machine is not new in many enterprises. For example, Midea established an industrial robot and service robot company with Yaskawa Electric Co., Ltd., which is also one of the four largest families of robots in the world, and this year acquired German robot KUKA company at the price of 29.2 billion yuan

at present, layoffs in Chinese enterprises should not be called layoffs, but layoffs. Downsizing is an active behavior, and downsizing is a passive behavior. The reduction is mainly the result of the robot replacement program. The more robots are used, the greater the number of staff reduction in enterprises. The reason why enterprises choose robots to replace people is mainly due to the tight employment in recent years and the rapid rise of labor costs in China. Liubuchen, a senior observer in the household appliance industry, believes that there is a big difference between robot manufacturing and manual manufacturing, that is, robot manufacturing is of great benefit to production standardization, which is precisely the most critical element of large-scale industrial manufacturing. It can improve product uniformity and yield, so as to enhance the competitiveness of made in China in the world. In fact, downsizing is the necessity of enterprise transformation. It is not only a crisis, but also an opportunity. Layoffs in enterprises are directly related to intelligent manufacturing 2025 and factory automation. Liu buchen believes. In addition, Liang Zhenpeng also said: the automation upgrading of enterprises is the general trend. Enterprises carry out the automation transformation and upgrading of production lines, improve the input-output ratio, improve production efficiency, and improve the business conditions of enterprises. There is no need for so many employees, and layoffs are normal. At the same time, Liu buchen predicted that different enterprises have different practices in the face of the new era, and some enterprises will naturally be eliminated in this round of automation upgrading competition. Because powerful enterprises have funds to realize robot production, so as to reduce labor costs and improve the profitability of enterprises; Those enterprises without strength and financial strength to buy robots will have to bear labor shortages and high labor costs at the same time, leading to further decline in their competitiveness. Thus, the stronger the strong, the weaker the weak. This is the shuffle

it is worth noting that at present, the robot plan of mainstream enterprises is still in the process of implementation, and the industry reshuffle is still in progress, and it is not time for the dust to settle. It is expected to be known by the meeting in three years. Liu buchen said