Foxconn Axes 50,000 Seasonal Jobs as Apple Slowdown Bites

Foxconn's most important iPhone factory at Zhengzhou will be 50,000 employees lighter due to reduced iPhone demand. Seasonal reductions, even at this scale, aren't out of the ordinary, but the latest cuts have occurred earlier than usual, which suggests the industry's "severe" downturn is very much real. "A source close to the company said its normal practice was to reduce the 200,000-strong head count by tens of thousands every month...and for [2018], it just happened sooner than in the past because of poor demand." Other important iPhone suppliers have let workers go much earlier than usual as they struggle with slower-than-expected demand for Apple's iconic product. The California tech giant earlier this month shocked the market by warning of a slump in revenues at the end of 2018. This year is also shaping up to be difficult, with further declines expected in the smartphone market, while the ongoing U.S.-China trade war is taking a heavy toll.