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Sharp contractors axe 3,000 staff as iPhone sensor output shifts: union

Reuters  |  TOKYO 

(Reuters) - Nearly 3,000 foreign workers subcontracted to have been laid off in central Japan, a labour union said, as the firm moves production of some sensors for Apple iPhones to a Chinese plant owned by its parent

The labour union said some of the laid off workers were its members. The union is in in central Japan, where is located.

The of the relocation, first reported by the Nikkei daily, and the layoffs sent Sharp shares down 5.7 percent on the Stock Exchange. This compares to the broader market's 2.4 percent decline.

The deep job cuts come as debates whether to bring in more foreign workers amid a local labour shortage, highlighting how such employment is often at the mercy of manufacturers' production cycles.

A said the company was not in a position to comment on issues at subcontractors.

Sources familiar with the matter, however, told that was relocating production of sensors used in the feature introduced by in its X last year.

The sources, who declined to be identified because the decision to relocate is private, did not say why Taiwan's decided to move the production from the to its own plant in

Foxconn said in a statement that the company follows a strict company policy of not commenting on any matters related to current or potential customers, or any of their products.

In October, Sharp lifted its full-year profit outlook as a part of a turnaround under the ownership of Foxconn.

The Osaka-based maker has slashed costs after being taken over by Foxconn, formally known as Hon Hai Precision Industry Co Ltd, in 2016 as it struggles to compete with South Korean rivals in organic light-emitting diode screen

Foxconn, Apple's biggest assembler, is conducting its own restructuring measures, aiming to cut 20 billion yuan ($2.88 billion) from expenses in 2019 as it faces "a very difficult and competitive year", has reported.

(Reporting by in Tokyo and in Bengaluru; Additional reporting by in Taiwan; Editing by and Himani Sarkar)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 14:05 IST