Low sales of Apple iPhones cause the layoff of thousands in their factories

Because of Apple's production cuts, the Zhengzhou factory, which is responsible for most of the Iphone production, made a massive downsizing.

Foxconn, the Chinese company responsible for the production of Apple iPhones, has been forced to lay off more than 50,000 employees since October.
Pegatron, Apple's second-largest assembly company, was also affected by these massive layoffs as, at its peak, the company had around 200,000 employees and month-to-month layoffs numbered in the thousands, currently reaching 100,000. employees that is necessary to maintain a regular and stable production.

REGULAR CUTS, OUT OF TIME

The layoffs is not unusual compared to previous years, since they are temporary jobs, what is unusual is the time, since they occurred much earlier than expected.

"It's quite different this year to ask assembly line workers to leave before the end of the year."

Most of the laid off employees were from its factory in Zhengzhou, in Henan province, China, which is the most important for Iphone as it is responsible for producing most of its phones.

According to the source that gave this information, normally the contracts of these workers would be renewed every month from August to the end of January, which is when the workforce is reduced due to the low production season.

Foxconn aims to cut costs by about 20 billion yuan ($2,96 billion) in 2019 compared with 2018, according to an internal document dubbed “project 1031.”

Since Apple's sales forecasts with its iPhones began to fall and not reach their expected, the company announced to its partners the production cut of its terminals.

source: nikkei