Foxconn Slash 50,000 Jobs Amid iPhone Slump
Component giant, Foxconn, has reportedly slashed tens of thousands of seasonal jobs earlier than norm, driven by declining iPhone sales, and low flagship phone replacement demand.
As per the Nikkei Asian Review, Foxconn has let around 50,000 contract staff go from its key iPhone factory in China’s Zhengzhou, since October last year.
The factory is reportedly where nearly half of Apple handsets are made.
Sources claim the layoffs have occurred significantly earlier than before, with most seasonal contracts renewed every month from August to mid to late January.
Consequently, insiders claim it’s very unusual so many assembly line workers were asked to leave before year end.
The news follows Apple’s holiday forecast downgrade, coupled with a lower-than-expected revenue slump for the end of 2018.
The Nikkei Asian Review reports similar actions have also occurred at other companies’ assembly plants – e.g. Pegatron.
Cutbacks seek to reduce operating expenses during what most commentators claim is the most severe smartphone downturn this decade.
For the month of December, Foxconn reporteded an 8% year-on-year revenue decline.
In a bid to cut costs, Foxconn has reportedly merged MacBook and iPad manufacturing units with those making Dell and Acer laptops and PCs.