As a result of Apple's weaker forecasts, the iPhone factory in Asia fired 50,000 workers. These are seasonings that are regularly engaged due to increased production of phones – which is now missing.
Apple obviously recalculated when it was selling iPhone phones. This was confirmed more by Tim Cook himself when he discovered that less revenue is expected in the upcoming period. In accordance with these unfavorable forecasts, there has been an early cancellation of 50,000 seasonings at Foxconn. They are usually engaged every year in order to reach the quota for the production of new iPhone phones in the short term. This year, this is not the case because of the US-China trade war, so workers are sent to take a break.
Foxconn has fired 50,000 workers earlier than usual to reduce operational costs due to the expected reduced workload. Although it is normal practice to lay off workers by ending the "downtown" season, it never happened in October. Instead of the period before the end of the year being the most productive, the workers are sent home. This is just one of the moves of a Taiwanese company that is trying to reduce business costs as it is in a serious downside.
The company behind the iPhone factories in Asia has defaulted
Taiwanese company Foxconn is in the midst of a cost-cutting process to meet expected financial problems in the new year. With the early release of seasonal workers from iPhone factories, the company entered into restructuring to reduce costs. The results of the consolidation of the company will be to reduce the number of employees in management but also in other sectors such as administration, finance, human resources (ironic), etc.
The company's goal is to reduce the number of employees by 100,000 out of a total of 1.1 million at the end of last year. This move would help the company cut costs by nearly 3 billion in 2019, reports the Nikkei Asian Review. Although Apple is Foxconn's largest partner, the company also makes products for HP, Dell, Amazon, Huawei Technologies, Xiaomi, and many other brands. The emerging situation with the expected drop in sales of iPhone devices in China certainly does not go hand in hand with a company that without it has enough problems.