In response to a report saying that Foxconn Electronics (Hon Hai Precision Industry) will cut its operating expenses by CNY20 billion (US$2.9 billion) in 2019, the Taiwan-based EMS provider has maintained that it regularly reviews its strategies, and that its latest plan and budget is meant to satisfy clients' current and forthcoming demand, key technology R&D, and the company's global development.

Foxconn did not mention any monetary figures in its response, but neither did it dismiss the report that said it would be cutting expenses.

Foxconn said its latest plan and budget aims to support the group in meeting challenges in the next 1-2 years.

Foxconn reportedly is cutting its operating expenses by CNY20 billion for 2019, with CNY6 billion to axed at its smartphone business and CNY3 billion at its industrial Internet of Things-related (IIot) business. The rest of the cut reportedly will be spread among Foxconn's other departments.

Foxconn's operating expenses have been dropping since 2017. The amount was around NT$190 billion (US$6.1 billion) in 2017 and went down to only NT$133 billion for the first three quarter of 2018 combined. If the report is correct, the 2019 amount is expected to fall to only about NT$90 billion.

The reported expense cut has also raised concerns among market watchers that Foxconn's new product R&D may be significantly affected.

Since Foxconn is expected to begin a series of evaluation over the performancces of its executives at the end of 2018, some market watchers expect a wave of personnel adjustments at the company in the near future.