Taiwan's Economic Daily reported on the 19th that due to negative factors such as the sales of Apple's new iPhones are less than expected and the increase in environmental variables, Foxconn Group recently proposed four major strategies for advanced personnel optimization, reducing labor costs and fixed expenses in advance, and launched a series of corresponding projects, and related benefits will appear as soon as the end of this year.
report revealed that the senior executives of Hon Hai have proposed several sets of response measures. First, internally reviews the value of contributions of high-salary personnel. industry has reported that many general managers, vice presidents and vice president-level management teams are on the list of reviews one by one and have made corresponding arrangements, but the details have not been confirmed by Hon Hai.
Secondly, in human resources review, outlines, the target-related costs of non-technical positions, indirect personnel and clerks, reduce the target-related costs by about 10%. The series of plans will be achieved within this year.
Third, formulate a plan to reduce fixed costs by 20%. Industry observes that after the relevant strategies are strengthened, the benefits are expected to appear in the fourth quarter of this year. Fourth, each group held mobilization meetings successively to strengthen the review of the performance of a series of work.
reported that the four major strategies proposed by Hon Hai Group this time, in addition to hoping to bring more positive business support, is also actively implementing the first year plan of the group president and Hon Hai chairman Guo Taiming set the tone of "Solid Work Year".
report pointed out that some market insiders believe that if Hon Hai Group's four major strategies are indeed achieved, the group will have more cost advantages and action, which will help attract foreign capital to cover, making Hon Hai once again one of the indicators for the Taiwan Stock Exchange market to reach another 10,000 points.
It is reported that Terry Gou has sworn to small shareholders many times at the beginning of the year and this year's shareholder meeting that Hon Hai Group has formulated a solid annual work plan for the next three years. At the same time, the Spring Festival couplets written at the beginning of the year also echo the launch of "improving quality, increasing efficiency, reducing costs, reducing savings, and cloud-based people's intelligence as competitiveness", and "key effective micro-nano massive big data is new energy", and the use of new intelligent manufacturing technologies combined with cloud computing, nano, big data and AI respectively to improve its competitiveness globally.
report pointed out that Hon Hai’s financial report shows that in the third quarter of this year, due to the peak production season, combined with shipment amplification and production efficiency improvement, and cost control, the net profit in a single quarter rebounded to 24.876 billion yuan, an annual increase of 18.3%; however, the net profit in the first three quarters of this year was about 66.446 billion yuan, an annual decrease of 0.9%. Whether it can turn positive throughout the year depends on the actual strategic execution benefits in the fourth quarter.
reported that Hon Hai's stock price has been weak recently. As of last Friday (16th), it has been on the seller for ten consecutive trading days, with a total of more than 49,000 leaving, closing at 74.3 yuan last Friday, down 0.2 yuan.
Last week, the four Apple suppliers, AMS, Qorvo, Lumentum Holdings and Japan Display, have lowered their revenue expectations. Although all the four companies did not directly specify "Apple", the statement of "main customers" is self-evident.
(Editor in charge: Li Jing)
