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Foxconn Unit To Cut Over 10,000 Jobs As Robotics Take Over (nikkei.com)
According to Nikkei Asian Review, "Foxconn's panel arm Innolux is planning to slash more than 10,000 jobs this year as part of the company's aggressive efforts to increase the use of automation in manufacturing." Honorary Chairman Tuan Hsing-Chien said in a press conference on Tuesday: "We will reduce our total workforce to less than 50,000 people by the end of this year, from some 60,000 staff at the end of 2017." From the report: Innolux is a liquid crystal display-making affiliate of major iPhone assembler Hon Hai Precision Industry, better known as Foxconn Technology Group. Tuan is also a technology adviser to Foxconn, Sharp and Innolux. Tuan said up to 75% of production will be fully automated by the end of 2018. Most of Innolux's factories are in Taiwan. Tuan's pledge came a few days after Foxconn Chairman Terry Gou said the company would pour in some $342 million to overhaul its manufacturing process by using artificial intelligence.
https://www.salon.com/2018/02/...
You're using some lovely RIAA math there, sport.
Wisconsin is paying nothing by offering tax breaks and tax credits for a company that otherwise would not even be setting up shop in Wisconsin.
You seem to assume that a government wouldn't be that stupid and corrupt, but you're totally wrong.
To lure Foxconn Technology Group to Wisconsin, state residents will have to do more than just forgo taxes from the Taiwanese electronics giant. They will have to pay cash — writing checks for up to $200 million a year.
And because Wisconsin already waives almost all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenue but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years. When including a $150 million sales tax break for buying construction material, the incentive package could total up to $3 billion, according to the bill that lawmakers could vote on as soon as Tuesday.
Wow, I didn't realize the drivers of the vehicles going to that factory were exempt from paying gas taxes! I didn't realize that the factory gets its water, power, sewer and trash services for free! Awesome!
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
They already cut the workforce from 110,000 to 50,000.
Somehow, when it is cheaper to replace Chinese workers with robots, those manufacturing jobs will come back to the US...
FoxCONN (as it was a CON) bringing in the big new Diplay factory to Mount Pleasent, WI promising 30,000 jobs - yeah for ROBOTS! Foxconn even bought the old Northwest mutual building in Milwaukee to make it their North American Headquarters.
A bunch of property owners are SUING over the use of "eminent domain" to take their land for the foxconn plant. Boy is Good old Scott Walker FUCKING the people of WI with this one!
The Truth is a Virus!!!
They'll be so much better off unemployed than having that "sweat shop" job.
It is unlikely anyone will be unemployed. Most of these robots are going into areas where labor costs are highest, which means the areas around Shenzhen. There are plenty of other jobs in that area. Nearly every business is looking for workers.
The headline and summary are misleading. What they describe as "job cuts" and "slashing" are really Foxconn dealing with hiring shortfalls. The one child policy started in 1979 and became more strictly enforced in the 1980s. Workers born in the "bulge" generation before that are no longer interested in working on factory floors, and there just aren't enough young people to replace them.
There are three solutions:
1. Move manufacturing further inland or to other countries (such as Vietnam), where supply chains will have to be rebuilt, and new workers trained.
2. Raise wages to draw more workers off the farms.
3. Use robots.
From a business perspective, #3 is the best choice.
Wisconsin is paying nothing by offering tax breaks and tax credits for a company that otherwise would not even be setting up shop in Wisconsin.
If no subsidies were offered, the jobs would still go somewhere (possibly Wisconsin), so by offering tax breaks Wisconsin is depriving some state of tax revenue, and, meanwhile, another state is offering tax breaks that is depriving Wisconsin of revenue. Meanwhile, businesses are locating to optimize their tax breaks, rather than where it actually makes the most sense for reasons of skill availability, resources, and logistics.
These tax incentives are a Prisoner's dilemma. Each state does it because the other states do it, yet they would all be better off if no one did it. It would be a beneficial and legitimate use of the Commerce Clause for the federal government to just ban this economically damaging activity. It would be better and more fair for both states and businesses.
We will reduce our total workforce to less than 50,000 people by the end of this year, from some 60,000 staff at the end of 2017.
That's outrageous! People really need to contact them and let them know what they think about this statement. It's not less than 50,000 people. It's fewer than 50,000 people.
~Loyal
I aim to misbehave.
....a German union responded to increasing automation by striking for a 28 hour work week with a pay increase....and they won.
"From a business perspective, #3 is the best choice."
It does look nice if you don't know what's involved. It's not so great when you actually try to implement robots and automation. It requires a lot of good involved key technical people and lots of patience. There are quite a lot of pitfalls, lots of headaches, things not working, lots of planning, lots of engineering involved and a lot of innovation involved. If you can't keep these people around, your robots might as well be expensive paper weights.
I run into a lot of plant owners around me who think automation allows them to get rid of all their expensive employees, but it's actually the inverse. You end up getting rid of your cheap labor for highly paid skilled positions. To me it's a great thing, it's actually overall cheaper for me with better paid employees who care and knowing things get done without me having to worry or be stressed out. But there are a lot of managers and owners who don't see that at all and expect automation to replace their expensive maintenance people and engineers. They buy these expensive automated machines and expect Juan on minimum wage to be able to figure out how to run it, fix it, troubleshoot it, and also at the same time expect Juan to be QC. Then they cry and wonder how it turned into a disaster.
American businesses chose cheap labor in the 90s, in spite of the availability of robots, so, why pursue robots now, instead of more cheap labor?
Because the 90s were 20 years ago, and robots today are way better.
You're using some lovely RIAA math there, sport.
Wisconsin is paying nothing by offering tax breaks and tax credits for a company that otherwise would not even be setting up shop in Wisconsin.
You seem to assume that a government wouldn't be that stupid and corrupt, but you're totally wrong.
To lure Foxconn Technology Group to Wisconsin, state residents will have to do more than just forgo taxes from the Taiwanese electronics giant. They will have to pay cash — writing checks for up to $200 million a year.
And because Wisconsin already waives almost all taxes on manufacturing profits in the state, these incentives represent not a lost opportunity at collecting revenue but an obligation to pay cash to Foxconn out of the state treasury for up to 15 years. When including a $150 million sales tax break for buying construction material, the incentive package could total up to $3 billion, according to the bill that lawmakers could vote on as soon as Tuesday.
Don't worry Wisconsin is a Republican controlled state. As we all now Republicans are the party of low taxes, small government and restraint in state expenditure. We can therefore rely upon them to vote no to this vast expenditure of money from the state treasury on the grounds that it makes no sense from a business point of view, that it is an intolerable government interference in the workings of the free market and that it is not in harmony with their long treasured Republican ideals of small government and limiting expenditure from the state treasury. Sir, you may rely upon the Republicans to be the voice of reason in this matter.
Not really a prosoners dilemma. The states are able to talk to rach other. Sure, that makes it worse.
Several years ago in Belgium Renault closed their doors, while theu opened a new one in Spain with subsidies. That would mean that Spain was paying for people to get fired.
So they withdrew the subsidies. That was because they where able to talk.
It also did not help Renault that their excuse of closing was overproduction if you open a new factory elsewhere.
Don't fight for your country, if your country does not fight for you.
Foxconn employees are actually less likely to kill themselves than the average in China for people of their age and gender.
If Foxconn factories are so terrible because of the suicides, then the American universities campuses must literally be hell.
Facts get in the way of the evil Foxconn suicide narrative.
"His name was James Damore."
. . . until they could perfect a robot that could commit suicide due to poor working conditions.
Came here to say that by cutting 10k jobs they will save a fortune on safety netting.
"That's the way to do it" - Punch
I get scoffed at regularly when talking about the negative tax-rate multinationals, but it happens way more often than most anyone thinks. Guaranteed tax refunds mean that a lot of companies, like GE and Boeing, are actually getting paid to work in the US and it's a matter of public record.