Big Corporate Layoffs Hit Shenzhen IT Manufacturing Business
At 11:00 on March 29, 3 employees were ready to jump from Shenzhen Foxconn's longhua building G14. According to witnesses, those 3 employees were negotiating with company regarding the “Foxconn diversion plan”. Liu Kun, Foxconn public speaker, told reporters that many employees are working negatively to resist this plan, but Foxconn does not agree or support their actions in this way. "
Company like Foxconn with large-scale labor-intensive manufacturing enterprises in Shenzhen, is facing a business downturn, and has to cut costs by reducing workforce. In contrast, small manufacturing enterprises are hiring more people recently, and some are even facing recruitment difficulties. Why the situation is completely different for large corporation and small companies? “Large enterprises have experienced a natural process of transformation and upgrading and they are only interested in massive orders, but flexible small businesses rarely take the initiative to upgrade and they are taking any orders, no matter large scale or small amount. Currently, the global economy is going through a slow recovery with lacking of large orders but plenty small orders.
The OEM companies are trying to explore other areas in order to deal with the downwards trends of IT, Electronics manufacturing business. For example, Flextronics is seeking business opportunities in China's clean energy industry such as wind power and solar energy business.
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