Moscow, January 18 — “News. Economy.” The Taiwanese company Foxconn Technology Group, the world’s largest contract manufacturer of electronics, intends to lay off about 50 thousand contract workers in China in October, several months earlier than usual, reports the Asia Nikkei Review.
Photo: EPA-EFE/Aleksandar Plavevski
The scale of cuts not necessarily more than in previous years, but they happen much earlier, said a source familiar with the situation.
“What is unusual this year workers of the Assembly line are asked to leave by the end of the year,” the source told the Nikkei.
As reported “Vesti. Economy,” in November it became known that Hon Hai Precision Industry Co., or Foxconn, plans to cut spending by 20 billion yuan in 2019.
The company will need to reduce costs in the division in charge of assembling the iPhone, 6 billion yuan. In addition, it is planned to reduce about 10% of employees, not related to technical specialists.
Foxconn to revise the remuneration of managers with annual compensation of more than $150 million the Company also intends to reduce costs by division Foxconn Industrial Internet Co. 3 billion yuan.
Foxconn assembles a variety of devices — from iPhones and laptops to gaming consoles, the PlayStation from Sony Corp. — factories in China and other countries.
The company was affected by the global slowdown in smartphone sales, while the trade conflict between the U.S. and China heightened uncertainty.
According to Nikkei Asian Review, Apple in the first quarter of 2019 will reduce the production of new iPhone models by 10% due to weakening demand in China.
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