SHANGHAI -- Hon Hai will relocate tens of thousands of employees to lower-costs Chinese cities to take advantage of tax benefits and cut costs, according to published reports.

In order to cut operating costs by 20%, Hon Hai (Foxconn) will move up to 160,000 workers from a campus in Shenzhen farther inland to Wuhan and Jincheng, China Tech News said.

The Shenzhen, site currently employs 260,000 workers, China Tech News said, and is among the largest of Foxconn's 13 China campuses.

Hon Ha spokesman Edmung Ding was quoted as saying the worker migration began two years ago, and that no layoffs would be conducted in Shenzhen, the report said.

Hon Hai is following three strategies for the downturn, Ding reportedly said, including broadening income resources, moving workers to lower-cost inland sites, and a global "merge strategy" to increase market share.

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