Taiwan-based electronics automaker, Foxconn, has off-shored 155 jobs from a factory outside Indianapolis to Mexico, following changes in business and production objectives. Foxconn has so far failed to meet job creation targets promised, as part of a massive new factory supported by large tax breaks. However, the company confirmed that the plant in Plainfield, Indiana, was operated by a subsidiary firm and added that the layoffs would not affect other Foxconn-related companies.
Even though the 155 jobs account for only a small fraction of Foxconn’s 988,000 global workforce, the company is under a spotlight for failing to meet job-creation targets at another facility in Wisconsin that was cited by Trump as evidence of reviving American manufacturing.
Trump has also threatened U.S companies that off-shore jobs to other countries, and may hike tariffs on Mexican products following an immigration issue.
The Wisconsin facility, if completed, would be the largest greenfield investment by a foreign-based company in U.S. history, at 20-million-sq-foot.
But Foxconn is now reconsidering its plans about this facility as it is not expected to reach its job creation goals for the state.