Hon Hai kicks off recruitment campaign in Chinese factories

In this May 27, 2010 file photo, a worker looks out through the logo at the entrance of the Foxconn complex in the southern Chinese city of Shenzhen. (AP Photo/Kin Cheung, File)

TAIPEI (CNA) — Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has launched a series of recruitment campaigns at production sites in China and plans others, according to the company.

In a recruitment notice posted by Hon Hai, also known as Foxconn on the global market, factories in Guiyang, Guizhou province, Chengdu, Sichuan province and Zhengzhou, Henan province, started recruiting workers on Feb. 9, the fifth day of the Year of the Pig.

Starting on Monday, factories in Shenzhen, Guangdong province have also started recruiting, while the company’s plants in Hengyang, Hunan province are scheduled to launch recruitment campaigns Tuesday.

The Zhengzhou plant is responsible for assembling iPhones for Apple Inc., making Hon Hai the most important assembler of the device.

In January, international media reported that Hon Hai, had laid off about 50,000 seasonal employees in China since October 2018.

According to a report in Nikkei Asian Review, an industry source was quoted as saying Hon Hai had laid off about 50,000 workers at its Zhengzhou plant since October amid weaker than expected demand for the latest iPhones unveiled in September.

Meanwhile, Bloomberg reported that Hon Hai has adjusted its recruitment plan by taking into account the weakness of the global economy at a time of trade tension between the United States and China.

While Hon Hai did not directly respond to reports of the layoffs, the company said in a statement released Jan. 22 that it is looking to hire 50,000 workers in the first quarter in China.

In addition to the factories in Guiyang, Shenzhen, Chengdu and Zhengzhou, Hon Hai also started to look for workers in Taiyuan, Shanxi province, Hangzhou, Zhejiang province, as well as Kunshan and Huaian in Jiangsu province at the beginning of the year, the company said.

The salaries offered by Hon Hai to its Chinese workers range from 4,000-5,000 Chinese yuan (US$739) a month, sources close to the recruitment plans said.

Despite falling demand for iPhones, Hon Hai still reported NT$1.81 trillion (US$58.71 billion) in consolidated sales for the fourth quarter, the highest quarter in the company’s history.

For 2018, Hon Hai’s consolidated sales also hit a new high of NT$5.296 trillion.

Analysts said after a capital reduction of 20 percent in 2018, Hon Hai is expected to post about NT$8 in earnings per share for the year, little changed from NT$8.01 posted in 2017 Terry Gou (郭台銘), chairman of Hon Hai, said before the Lunar New Year holiday ended Sunday that the group is determined to make more effort in artificial intelligence development and integrating AI with the cloud technology, helping to transform itself from a pure contract manufacturer.

By Chung Jung-feng and Frances Huang