Foxconn Halts Hiring, Probably Not Completely Pulling Out of China [REPORT]

Foxconn is considering restructuring its operations in China, reports Businessweek. At the same time, The Register writes that Foxconn is considering shutting down its factories in China altogether, a rumor that arose out of a shareholder's meeting held three days ago.

Following the string of suicides at the Foxconn factories in China -- which produce devices (including the iPhone) for consumer electronic giants such as HP, Apple and others -- Foxconn officials first announced that the company would increase the salaries of workers, as well as raise safety nets around the dormitories and factory buildings to help the situation.

However, Foxconn may now have decided that at least partially moving its operations elsewhere is a preferable solution. According to Businessweek, Foxconn has stopped hiring workers across China to “review resource allocation.” Recently, Foxconn Hon Hai Chairman Terry Gou announced at a shareholder's meeting plans to relocate some of Foxconn's production to automated factories in Taiwan or Vietnam.

Whether this means Foxconn is planning to completely move its operations from China remains to be seen, but given its enormous task force there, it's very unlikely. If Foxconn does pull out of China altogether, it will leave 800,000 Chinese workers unemployed.