In 2017, Foxconn said its $ 10 billion manufacturing facility in Mount Pleasant, Wis., Would eventually create more than 13,000 jobs, lured to the state by lucrative state subsidies to revitalize manufacturing in the area. While the plant is still under construction, initial hiring seems to be slow, and the company says it is "adjusting our hiring and hiring schedule," due in part to global economic conditions and the weak labor market in the state.
On Friday, The Wall Street Journal He reported that the company "did not reach the minimum number of jobs that it had to create in 2018 to claim tax credits for the creation of state jobs." The Wisconsin Economic Development Corporation says the company needed to create 260 full-time jobs, but only created 178. As a result, the company will not receive tax credits by 2018. WSJ He cites the state's low employment rate as a factor for slow hiring, and notes that the company could earn $ 19.1 million in tax credits if it exceeds its goal of hiring 2,080 jobs this year. The company denied reports last November that it had been looking to bring workers from China to strengthen its workforce.
On top of that, Foxconn seems to be adjusting its hiring expectations in the near future. He says Bloomberg that "remains committed" to the creation of the 13,000 jobs promised, but that could delay their hiring to advance: "we need to have the agility to adapt to a variety of factors, including global economic conditions." The company and former Governor Scott Walker has been strongly criticized, both for the high subsidies promised to the company, and the possibility that the company does not fulfill its promise to bring 13,000 jobs to the state.
Those economic conditions include the hardening of the market for Apple iPhones, which Foxconn manufactures in China. Reportedly, Apple is reducing its own hiring after sales weaker than expected from the latest generation of iPhones. Apple cited weak demand in China and battery replacements higher than expected last year as reasons for the slowdown. The Foxconn plant in Wisconsin will not manufacture iPhones, but will produce LCD panels, but the slowdown in global demand seems to have Foxconn in a more cautious approach.