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Foxconn might plant slow hiring at its Wisconsin plant




in 2017, Foxconn has said that its $ 10 billion manufacturing plant in Mount Pleasant, Wisconsin would eventually create upwards of 13,000 jobs, lured to the state by lucrative state subsidies to reinvigorate manufacturing in the area. While the plant is still under construction, initial hiring appears to be slow, and the company says it's "adjusted our recruitment and hiring timeline," due in part to global economic conditions and a tight labor market in the state.

On Friday, The Wall Street Journal reported that the company "fell short of the minimum number of jobs it was required to create in 201[ads1]8 to claim state-job creation tax credits." Corp says that the company needed to create 260 full-time jobs, but only 178. As a result, the company will not receive tax credits for 2018. The WSJ cites the state's low employment rate as a factor for the slow hiring, and notes that the company can earn $ 19.1 million in tax credits if it passes its hiring goal of 2,080 jobs this year. The company denied reports last November that it was looking to bring in workers from China to bolster its workforce.

On top of that, Foxconn appears to be adjusting its expectations for hiring in the near future. It tells Bloomberg that it "remains committed" to creating those promised 13,000 jobs, but that it might slow its hiring moving forward: "we need to adapt to a range of factors, including global economic conditions. ”The company and forms Governor Scott Walker have been heavily criticized, both for the steep subsidies to the company, as well as the possibility that the company might not deliver on its promise to bring 13,000 jobs to the state.

Those economic conditions include the tightening market for Apple's iPhones, which Foxconn manufactures in China. Apple is reportedly slowing down its own hiring following-than-expected sales of the latest generation of iPhones. Apple cited weak demand in China and higher-than-expected battery replacements last year than reasons for the slowdown. Foxconn's Wisconsin plant has manufactured iPhones – it will produce LCD panels instead – but the slowing global demand appears to have Foxconn on a more cautious approach.



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