Apple Supplier Factories Reducing Staff and Cutting Overtime Due to Falling Demand

With most Apple Stores around the world closed since March 14, demand for Apple's devices has been dropping off. As a result, the factories that assemble those devices are reducing staff and cutting overtime hours, according to Financial Times.

chinafoxconn
Multiple workers at Foxconn's Zhengzhou complex, where iPhones are assembled, said that Foxconn has paused hiring and has begun cutting some of the temporary workers that it hired after ramping up production following factory closures in February.

Overtime hours have also been cut, and Foxconn has been encouraging employees to take holidays. Workers say no overtime has been worked since April 10.

Pegatron has also been cutting employees due to falling demand. Approximately a thousand temporary and third-party workers were fired, according to an employee at the factory. "The US orders are not coming, so why would we keep all the workers," he said.

Apple has begun reopening its stores, starting with a retail location in South Korea. There is no clear word yet on when stores in the United States are set to open, but Apple is aiming for May. Stores are expected to reopen on a rolling basis, with Apple taking into account local conditions and guidelines for each location.

Popular Stories

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
macbook pro blue green

When Will Apple Release the M5 MacBook Pro?

Wednesday March 26, 2025 4:53 pm PDT by
Apple regularly refreshes the MacBook Pro models, and a new version that uses M5 series chips is in the works. Apple just finished refreshing most of the Mac lineup with M4 chips, and now it's time for the M5. Rumors suggest that we could see the first M5 MacBook Pro models this fall. Design There have been no rumors of a design update for the M5 MacBook Pro models that are coming this...
Apple Lumon Terminal Pro

Apple's Mac Site Features Fictional 'Lumon Terminal Pro'

Wednesday March 26, 2025 12:19 pm PDT by
Apple is going all out with promotions for the popular Severance Apple TV+ show today, and as of right now, you'll find a new "Lumon Terminal Pro" listed on Apple's Mac site. The Lumon Terminal Pro is designed to look similar to the machines that Severance employees like Mark S. and Helly R. use for macrodata refinement. The Terminal features a blue keyboard, a small display with wide...
Facebook Feature

Facebook's New iPhone App Feature Turns the Clock Back to 2007

Thursday March 27, 2025 1:59 pm PDT by
In the mid-to-late 2000s, Facebook was all about staying connected with friends and family. However, as the social media platform added new features and grew over time, that core experience began to get drowned out. That changes starting now, according to Meta, which today introduced a new feature that will "bring back the joy" of classic Facebook. Specifically, Meta has redesigned the...
Generic iOS 18

iOS 18.4 Coming Soon With These New Features for Your iPhone

Tuesday March 25, 2025 6:45 am PDT by
Apple is expected to release iOS 18.4 to the general public as soon as next week, following more than a month of beta testing. Apple's website says some iOS 18.4 features will be released in "early April," so the update should be out as early as Tuesday, April 1. Apple this week seeded the iOS 18.4 Release Candidate, which is typically the final beta version, barring the discovery of any...
iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Supports 8K Video Recording, Suggests Leaker [Updated]

Wednesday March 26, 2025 4:06 am PDT by
Update 7:25 pm: Based on comments from our forums, it appears the original Weibo post may have been mistranslated and "8K" actually refers to the high price of the device rather than 8K video recording capabilities. The iPhone 16 Pro currently starts at 7,999 yuan in China. Our original article follows below. Apple's forthcoming iPhone 17 Pro models are capable of shooting 8K video, up...
iOS 18

iOS 18.4 Expected Next Week - Here Are the Release Notes

Friday March 28, 2025 2:01 pm PDT by
With the second release candidate of iOS 18.4 that Apple seeded out today, the company finally provided us with release notes that give a full rundown on what to expect. There's an Apple Vision Pro app, new Apple Intelligence features for notifications and additional language support, plus an Apple News Food feature for Apple News+ subscribers, and several updates that should improve the...
iOS 18 4 Ambient Music Control Center

How to Use iOS 18.4's New Ambient Music Feature in Control Center

Thursday March 27, 2025 7:45 am PDT by
The upcoming iOS 18.4 update for the iPhone adds an Ambient Music feature to Control Center. Below, we take a closer look at how it works. iOS 18.4 is currently in beta, so the Ambient Music feature is not widely available yet. The update will likely be released to the general public next week. To use the feature on iOS 18.4, open Control Center and tap on the plus sign in the top-left...
Foldable iPhone 2023 Feature 1

'iPhone Fold' to Feature Metallic Glass Hinge That Resists Deformation

Thursday March 27, 2025 4:21 am PDT by
Last week, we covered a report claiming that Apple's book-style foldable iPhone (or "iPhone Fold," as we are provisionally calling it here) will use liquid metal hinges to improve durability and help minimize screen creasing. Today, a Chinese leaker provided more details on the properties of this hinge material that help to clarify why Apple chose it for its first foldable device. According...

Top Rated Comments

FlyingDutch Avatar
65 months ago
Hardly unexpected. The recession has begun.
Score: 7 Votes (Like | Disagree)
zubikov Avatar
65 months ago
20 million people (so far) suddenly found themselves unemployed in the US. Hundreds of millions worldwide. iPhones, iPads, watches and Macs instantly just became a luxury good for the rich. Apple is not immune to this pandemic.
Score: 5 Votes (Like | Disagree)
JPack Avatar
65 months ago

There is no "lack of global airfreight capacity." Post a source or stop posting this nonsense.
https://www.cnn.com/2020/04/08/politics/cargo-prices-skyrocketing-medical-supplies-us/index.html


In fact, capacity has increased since passenger aircraft can be devoted to cargo. For example,

https://simpleflying.com/delta-ups-cargo-flights-to-seoul-and-shanghai/
Overall cargo capacity has significantly decreased. Pre-pandemic, around 50% of the world's cargo flew in the bellies of passenger planes. Converting some passenger aircraft to carry cargo only make up some of the shortfall.
Score: 4 Votes (Like | Disagree)
44267547 Avatar
65 months ago

20 million people (so far) suddenly found themselves unemployed in the US. Hundreds of millions worldwide. iPhones, iPads, watches and Macs instantly just became a luxury good for the rich. Apple is not immune to this pandemic.
Bolded:

That’s a bit of a stretch with your comment. Even before the pandemic/recession, Apple Products have always been expensive and unobtainable for some who never Had intention of owning those products to begin with to begin with. The iPhone SE has the perfect timing, in regards that it’s an entry-level iPhone that’s less than half the price of the most expensive iPhone, but will appeal to audiences across the world, not just in North America alone.
Score: 3 Votes (Like | Disagree)
JPack Avatar
65 months ago

I'm confused. Apple just launched the SE, which seems to be in tight supply. And yet instead of making more phones, they're cutting labor? Maybe the SE is made elsewhere?
The SE2 is not in tight supply though.

There is a lack of global airfreight capacity, which is putting a strain on UPS, hence the slipping delivery dates for SE2.

If you look at China, the world's largest smartphone market and also where the SE2 is manufactured, you can have one delivered for launch day.
Score: 3 Votes (Like | Disagree)
chabig Avatar
65 months ago
Analysts knows nothing. According to this article (same day), Apple is boosting production:

https://asia.nikkei.com/Business/Teleco ... ough-March ('https://asia.nikkei.com/Business/Telecommunication/Apple-aims-to-increase-iPhone-output-by-4-through-March')
Score: 2 Votes (Like | Disagree)