Bloomberg, citing sources familiar with the situation, reports that Foxconn is planning to reduce production costs. The reason for this was the negative forecasts of analysts regarding sales of the iPhone.
The Bloomberg sources say that next year one of the main partners of Apple’s plans to cut its spending by almost 20 billion yuan (about us $ 3 billion). This reduction will lead to the fact that Foxconn will dismiss about 10% of its employees. Most likely, the first will lose their jobs working on Assembly lines. But the reduction should also address those employees whose work is not related to the technological process.
According to available data, in only one plant, which is assembling the new iPhone models, will be dismissed about 85 000 workers. This will allow Foxconn to reduce the cost of about 6 billion yuan (865 million dollars).
As mentioned above, the largest contract assembler plans to reduce your costs, based on the actions of Apple. We will remind that earlier it became known about a notable decrease in orders for iPhone iPhone Xs and Xr.