One Apple supplier cut a whopping 50,000 iPhone assembly jobs ahead of schedule

One Apple supplier cut a whopping 50,000 iPhone assembly jobs ahead of schedule

In order to meet the high demand that stems from new iPhone launches, manufacturers such as Foxconn and Pegatron rely on thousands of temporary employees throughout the August to January season. But this year the situation has led to some pretty big workforce cuts.

Typically, both Foxconn and Pegatron renew contracts on a monthly basis in order to maximize their profits before starting cuts in late January as iPhone demand weakens. As a direct result of slow iPhone sales throughout the end of 2018, though, a new report by Nikkei claims that Foxconn actually began scaling back its workforce in October and, to date, over 50,000 jobs have been cut ahead of schedule.

To further improve its efficiency, Foxconn recently combined its Mac and iPad production lines with those of Dell and Acer. This has been combined with a 50% reduction in the number of managerial positions.

Similar to this situation, Pegatron reportedly reduced its number of contract renewals starting in November, while other important suppliers have also implemented workforce reductions. Additionally, one Chinese component supplier has asked as many as 4,000 employees to take an extended “vacation” until March. Currently, these workers are technically still employees but a final decision on their status is expected by March.

Lastly, while not included in the report, Apple’s hiring has also been affected by the iPhone’s recent performance. In fact, the company’s CEO Tim Cook recently revealed to employees that certain departments will cut back on hiring for the time being.

FEATURED VIDEO

14 Comments

1. SIGPRO

Posts: 2806; Member since: Oct 03, 2012

Fruit company.........slowly drifting away......

2. kabel

Posts: 145; Member since: Nov 06, 2011

uhhhh .... meltdown has begun ... iPhone's are boring ?

3. cncrim

Posts: 1516; Member since: Aug 15, 2011

That's not great for those worker.

10. htcisthebest

Posts: 423; Member since: Nov 15, 2011

Who cares about those workers? If they are smart they would've not worked for Apple in the beginning.

12. p51d007

Posts: 694; Member since: Nov 24, 2013

It's a COMMUNIST dictatorship. Many don't have a choice. They are forced to work there..."or else". it's just a bit above slave labor.

13. mahalo15

Posts: 54; Member since: Nov 30, 2018

These workers were employed by Foxconn and Pegatron not Apple. Foxconn run assembly lines for many different phone companies including Apple. Also, they have assembly lines for PC companies like Dell, Acer and Asus etc too. Please read the article properly and then comment.

4. basher

Posts: 89; Member since: Sep 20, 2015

Companies lose money with Apple.

5. Leo_MC

Posts: 5884; Member since: Dec 02, 2011

Trump (lovers) will understand better this way why Apple or other company just can't build phones in USA.

6. Ariaztim0429

Posts: 1; Member since: Jan 07, 2019

Apple you made your bed now sleep in it! What were you guys thinking when you raised the iPhone price as high as 1300$ an amount that most Americans cannot or will not pay? Then you made the crap xr for everybody else when you can buy an Android phone that's much better for the same price

7. cmdacos

Posts: 3651; Member since: Nov 01, 2016

Hmm hopefully more emojis are added this year to help reverse the trend

11. htcisthebest

Posts: 423; Member since: Nov 15, 2011

Seriously that's all Apple does. Add new emojis every year and call it an innovation.

8. syed_itsa

Posts: 46; Member since: Feb 05, 2015

Macintosh .????

9. Jrod99

Posts: 673; Member since: Jan 15, 2016

This is what happens when you raise your prices and keep supporting your phones 5 years. You give people no reason to keep upgrading. I won’t be upgrading nothing for 4 years. At least mobile anyways. May get a 65 inch 4K hdtv but that’s it.

14. ryq24

Posts: 870; Member since: Oct 17, 2011

The die is cast. The end is near. I think iPhonee will never recover it's old glory unless they are ready to cut price and sacrifice profit for better sales.

Latest Stories