Foxconn Loses $18 Million in Employees' Salary in the First Half of the Year

Beijing time on August 30 news, Foxconn International recently released the first half of 2011 earnings report, the data show Foxconn net loss of 18 million US dollars in the first half, compared with the same period last year has been greatly improved, while employees' salary also reached 3 percent, realized the original The company's promise.

Foxconn’s financial report for the first half of 2011 showed that the company’s overall revenue reached US$2.994 billion, a year-on-year decrease of 7.28%; net profit loss was US$18 million, which was a better turnaround than the US$143 million of the same period last year. The overall gross profit rate rose from 2.79% in the same period last year to 4.82%.

In June 2010, Foxconn Group President Terry Gou promised to implement a plan to increase the salary of basic employees by 30% from June 1. Foxconn employees’ average monthly income has reached US$479.99, or approximately RMB 3,070, based on Foxconn’s financial report data. Compared with RMB 2,303 in the same period of last year, it has increased 33% and has already fulfilled its salary increase commitment.

Foxconn emphasized that it will increase the number of robots in the future in order to control the company’s staff costs and increase production efficiency. At present, Foxconn employees have been reduced to 94,500, a reduction of 15%. The impact of this change on total costs is only 12% higher. President Foxconn Terry Gou said that it will use millions of robots in the next three years to curb the rising cost of employees.