Foxconn slashes 50K jobs over lower iPhone demand

DAILY SABAH WITH DHA
ISTANBUL
Published 19.01.2019 00:00
Workers on the production line at the Foxconn complex in the Southern Chinese city of Shenzhen.
Workers on the production line at the Foxconn complex in the Southern Chinese city of Shenzhen.

Apple Inc.'s major chip supplier Foxconn Technology Group has cut around 50,000 temporary jobs at its Zhengzhou factory since October as a result of lower demand for the latest models of iPhones, the Nikkei Asian Review reported on Friday.

According to a source familiar with the matter, the seasonal workers are usually given monthly contracts from August until January, but in 2018 Foxconn began letting assembly workers go before the end of December.

Earlier this month, Apple issued its first revenue warning in nearly 12 years, citing poor Chinese demand, sending its shares down 10 percent, their biggest intraday fall in six years.

Apple lowered its guidance for the first quarter of 2019, citing several factors, including China's weakening economy and worse-than-expected iPhone sales. It slashed its revenue guidance for the first fiscal quarter of 2019, ended December 29, to $84 billion, sharply lower than analyst forecasts averaging $91 billion.

Later on, it was also reported that Apple has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter.

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