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BREAKING NEWS

BREAKING NEWS

Exclusive: Foxconn to reveal management overhaul as Gou sets sights on presidency - source

Exclusive: Foxconn to reveal management overhaul as Gou sets sights on presidency - source
FILE PHOTO: A motorcyclist rides past the logo of Foxconn, the trading name of Hon Hai Precision Industry, in Taipei, Taiwan, March 30, 2018. REUTERS/Tyrone Siu -
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Tyrone Siu(Reuters)
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By Yimou Lee and Jeanny Kao

TAIPEI (Reuters) – Apple supplier Foxconn is planning to overhaul its management structure in a move that would see more senior executives involved in the running of its daily operations, a person with direct knowledge of the matter told Reuters.

The decision comes as Chairman and Founder Terry Gou is seeking to run in Taiwan’s 2020 presidential election. He also told Reuters in April that he planned to step down from Foxconn to pave the way for younger talent to move up the ranks.

Any management reshuffle, which the source said would be announced at Foxconn’s first investor conference on Tuesday, could overshadow ambitious plans initially laid out by Gou, including a $10 billion investment to create 13,000 jobs in Wisconsin and an $8.8 billion display factory in southern China.

Foxconn is already under the spotlight for having so far failed to meet job-creation targets in Wisconsin, a plan cited by U.S. President Donald Trump as proof that he was reviving American manufacturing.

Reuters reported on Wednesday that Foxconn had offshored more than 150 U.S. jobs to Mexico.

Investors are keen for any insight into succession plans at the world’s largest contract manufacturer whose business ranges from smartphone assembling to panel manufacturing.

Shares in Foxconn, formally known as Hon Hai Precision Industry, have dropped around 24% since Gou announced in April his plans to run for president.

Foxconn is set to reveal on Tuesday a new “operations committee” that will give senior executives from the group’s subsidiaries greater control, according to the source, who declined to be named as the news had not yet been made public.

(Reporting By Yimou Lee and Jeanny Kao, additional reporting by David Dolan in TOKYO; Editing by Anne Marie Roantree and Himani Sarkar)

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