Foxconn Electronics (Hon Hai Precision Industry) is expected to lay off more of its employees in an attempt to salvage itself from the negative effects of the slow global economy. The company's chairman, Mr. Terry Gou, said that the economic crisis was three times worse than what was initially expected, for which reason Foxconn would continue its plan to lay off more of its employees, in order to reduce its operating costs.

 

According to a recent news article on digitimes, Foxconn is planning to lay off tens of thousands of employees in China, in addition to the company's already scheduled workforce reduction of 1500 employees at its plant in Hungary. As part of said plan, Foxconn will also cut its Taiwan workforce by 10-15 percent. All of the announced employee layoff plans are part of the company's attempts to reduce costs as the slow global economy keeps reducing its profit margin.

 

In related news, Foxconn has responded to recent reports according to which its PCB production lines in China have suspended operations for a period ranging from two weeks up to over four months. According to the company, it has been about the transferring of production to the southern China, which has provided Foxconn with an easier management of its operations.

 

Foxconn isn't the only company to have suffered from the effects of the slow global economy; ABIT can probably be considered the best example of how the worldwide economic crisis has affected the PC market. One of the former leading motherboard makers is now reported to be seriously considering closing its gates, as it hasn't been able to meet its financial target for this year. Despite the efforts of Universal Scientific Industrial, trying to revitalize the business for ABIT, as of December 31st, the mobo maker will cease to exist.