Foxconn cuts its temporary workforce ahead of schedule due to low demand for the iPhone — 2022
Like all factories, in the busiest periods, an extra staff is needed to be able to meet all the deadlines imposed by customers. Foxconn, the company in charge of assembling all Apple iPhones, is no stranger to this and every year it e is forced to expand its workforce after the launch of the iPhone in August until January in order to meet the strong demand for sales during the Christmas and post-presentation seasons.
After this period of post-presentation boom, this temporary template is obviously cut. So far everything normal, but this year there is something to highlight: Foxconn has reduced its workforce much earlier than usual... because of the iPhone?
Foxconn is also affected by low iPhone demand this year
Today the middle Nikkei has reported that Foxconn has been forced to make a drastic decision after be experiencing a serious crisis with regard to its workforce. These measures have also been taken by other providers.
Since October Foxconn has been forced to reduce its headcount by 50,000 employees, in the most important assembly factory in iPhone e located in the Chinese province of Henan, as reported by a source close to the production chain of this factory. Normally, the contract of these employees begins to be in force in August, to start the production of the new iPhone models, until the end of January when the selling season boom begins to wane.
Other less important iPhone providers such as Pegatron They have also been forced to terminate the contracts of their employees ahead of time, and even to give extended vacations from October to March, to decide on March 1 if the final dismissal is completed.
Although Foxconn is responsible for assembling for various brands, Apple is one of its biggest customers and that is why they have been forced to reduce the workforce drastically ahead of time due to the low demand for the iPhone this Christmas season. This workforce reduction has been known after recently announcing that its December revenue decreased by 8% due to low demand in 'consumer products', where the demand for the iPhone clearly enters.
Foxconn is not the only major supplier suffering from the slowdown in the mobile sector, but TSMCIt has also been forced to reduce its financial forecasts for all of this 2019 , until new devices are introduced later in the year.
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