8,000 jobs on the line as iPhone maker reportedly announces closures following worker suicides

Foxconn ‘to close mainland China operation’

Foxconn has reportedly said it will close its factories in mainland China, a move that follows a spate of suicides this year at the manufacturing plant in Shenzhen.

According to The Register, the news comes from Chinese-language news site ON.CC (which can be read in Google translation here) but has not been independently verified.

The announcement was reportedly made by Terry Gou, chairman of Foxconn’s parent company, the Hon Hai Group, at a shareholder meeting.

800,000 people currently work for iPhone manufacturer Foxconn in mainland China. Their jobs would of course be under threat if the closures go ahead. The ON.CC report appears to suggest production lines would be increased in Taiwan and Vietnam with new operations opening in India and other countries.

The latest news follows Foxconn’s announcement earlier this week that it would abandon the ‘factory town’ model of its manufacturing facilities.

The firm had also committed to raising its employees’ pay by 30 per cent in July, with workers whose performance met certain levels able to score an additional 66 per cent rise – effectively doubling their salaries.

Ten Foxconn employees have died jumped from buildings at the Longhua facility in Shenzhen, with an additional two workers surviving the fall and one attempting to slit his wrists.

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