New | Apple supplier Foxconn denies report it is cutting 1.3 million work force

Taiwanese electronics manufacturer and Apple supplier Foxconn Technology Group has denied reports that it plans to shrink its 1.3 million work force, one of the largest in the world.

“Foxconn wishes to clarify that a media report that alleges that our company is reducing its workforce is completely inaccurate and totally without foundation. We continue to recruit employees to support our business and operations globally and we continue to maintain a workforce of over one million employees worldwide,” a statement from the company said.

Reuters reported that special assistant to the chairman and group spokesman Louis Woo said “yes” when asked whether the firm planned to reduce overall headcount and Woo had noted labour costs more than doubled since 2010.

From 2010 through to 2012, the company was in the spotlight for a string of suicides linked to low pay and harsh working conditions which led the company to promise substantial pay rises.

One of the largest private employers globally, the group is staffed with about 1.3 million people during peak production times especially in the lead up to new iPhone launches by Apple, one of its major clients.

On Tuesday, Apple had reported record sales of 74.5 million iPhones in the fiscal first quarter ending December 27 due to its strong performance in the US and China markets. Revenue jumped to US$74.6 billion from $57.6 billion a year earlier.