It's more likely just US based, as it's too difficult, costly and takes too much time to divest workforce in areas like Europe and Taiwan. Plus the headcount reduction is a combination layoff and early retirement program. Once the retirement numbers are nailed down the remainder will come from...
There are lots of other companies using Foxconn (and other ODMs) who do monitor labor practices, and kick them to the curb when this misbehave.
Have you been to an electronics factory in China?
They had to. Between interior province manufacturing increasing, Foxconn raising wages and the governments, national and provincial, raising the minimum wage, they have to be able to be competitive enough to attract employees.
Except all of the conditions aren't that bad, and the pay isn't terrible. Not having that factory job leads to jobs with abysmal conditions and terrible pay.
All of the Chinese electronics factories I've been to (about 20) were clean, well run and with appropriate safety measures in place. I've worked in worse factories and conditions here in the US during summers at college.
Foxconn has already committed to adding up to 1 million robots to their production lines.
http://www.reuters.com/article/2011/08/01/us-foxconn-robots-idUSTRE77016B20110801
Vietnam has infrastructure and labor problems, and a lack of second tier suppliers to support the volume of production that China has. Brazil already has quite a few of the large CM/ODMs producing there, but for the local market, due to relatively high import duties.