TAIPEI (Taiwan News) — Foxconn Technology Group founder Terry Gou (郭台銘) removed his brother-in-law from the top of a health technology group and urged its thorough reorganization due to significant financial losses, reports said Wednesday (April 22).
Foxconn established a group of companies informally known as the "M Group," but as only three out of the ten companies made a profit, Gou demanded the merger or abolition of the other seven, according to Mirror Media. The report said that last week, the group's headquarters was suddenly disbanded in a move likely to throw about 100 people out of work.
One of the people reportedly losing his position was the group’s chief, Leonard Wu (吳良襄), who is married to the sister of Gou’s wife, Delia Tseng (曾馨瑩), according to Mirror Media.
Wu used to work for American companies and needed three years to adapt to the Foxconn business culture, the report said, adding that at his previous jobs, he often left the office around 8 p.m., but at Gou’s group, his working day often ended after midnight.
Foxconn reportedly invested NT$3 billion (US$99.7 million) in the health group, but critics said it was hard to replicate the company’s contract manufacturing model in the sector of biotechnology and biomedicine.
Company officials reportedly said the business was a long-term operation which some times needed adapting. Any layoffs would respect legislation, while senior positions might change according to the needs of the companies’ development, according to the Mirror Media report.