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Foxconn axes thousands of seasonal workers early in wake of falling iPhone demand, misses...

By midian182 · 10 replies
Jan 21, 2019
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  1. The Nikkei Asian Review reports that 50,000 seasonal workers have been let go from Foxconn’s Zhengzhou plant since October. Staff’s contracts are usually renewed every month from August until mid- to late January, which is when iPhone production slows.

    While the number of people let go isn’t necessarily more than usual, they have been axed earlier than in previous years. "It's quite different this year to ask assembly line workers to leave before the year-end," said one source.

    Back in November, Foxconn said it was cutting $3 billion from its costs ahead of a “difficult 2019.”

    The news follows waning demand for the latest iPhones, which led to Tim Cook’s recent warning that Apple’s revenue will be lower than predicted for the last quarter.

    But it’s not just Apple that is feeling the pinch. Samsung missed analysts’ expectations and saw its first quarterly profit decline in two years during Q4 2018. With the market suffering, some believe that handset production levels in the first three months of this year will drop to their lowest levels since 2013.

    The Nikkei adds that Apple’s second-largest iPhone assembler, Pegatron, started canceling monthly contracts back in November, which was also earlier than usual.

    In other Foxconn news, the firm is also experiencing problems at its Wisconsin plant. The Wall Street Journal reports that the company created 178 full-time jobs last year, falling short of the 260 minimum it needed to claim state-job creation tax credits. It could still earn the benefits if it hires over 2,080 people in 2019.

    Foxconn said 13,000 jobs would eventually come to the plant, something it remains committed to, but warned that “we need to have the agility to adapt to a range of factors, including global economic conditions.” The firm blames global economic conditions and a tight labor market for the slow initial hiring.

    Image credit: Tony Savino / Shutterstock

    Permalink to story.

     
  2. R00sT3R

    R00sT3R TS Maniac Posts: 114   +224

    Hmmm, Apple wants a $1000 for a phone and arrogantly thinks people will just keep on falling for it in ever increasing numbers.

    Nvidia should look & learn the lesson that people can only be pushed so far...
     
    mcborge and btfsttg like this.
  3. redgarl

    redgarl TS Enthusiast Posts: 31   +26

    This is what happened when investors ask for profit with nothing else than "refreshes" on the roadmap. You can only make that much over something saturated like the cell phone business.
     
  4. Uncle Al

    Uncle Al TS Evangelist Posts: 4,744   +3,165

    Between the tech company layoffs and our illustrious government we won't have to worry much longer ......
     
  5. iamcts

    iamcts TS Addict Posts: 155   +105

    As someone from WI, you mean to tell me Foxconn lied and mislead about the jobs they could create for their massive tax breaks?

    No way! I cannot believe it!

    /sarcasm
     
    Evernessince likes this.
  6. btfsttg

    btfsttg TS Rookie Posts: 27   +17

    Gloom, despair, agony on me . . .
     
  7. btfsttg

    btfsttg TS Rookie Posts: 27   +17

    The People's Republic of Madison, no doubt.
     
  8. wiyosaya

    wiyosaya TS Evangelist Posts: 3,289   +1,720

    Reality is catching up to crApple and all the companies that think their customers are sheep. My first thoughts toward this are "with $400bn in the bank, crApple need to make a profit?" The way I see it, there is a correction coming to companies like these that think their customers have never ending bank accounts - and anyone investing in them would do well to reconsider their investments - IMO.
     
    mcborge likes this.
  9. B5S46M

    B5S46M TS Enthusiast Posts: 17   +29

    It was all Walker and the republicans who rammed this through. Get your facts straights.
     
  10. btfsttg

    btfsttg TS Rookie Posts: 27   +17

    The hive minds of collectivists.
     
  11. koblongata

    koblongata TS Booster Posts: 138   +34

    Well... I don't really understand it, this bring back the manufacturing and then the global trade wars America is waging, those just can't go well together...
     

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