Apple supplier factories are cutting overtime and reducing staff

Apple stores have been closed since March 14 all across the globe. Also, the demand for the new iPhones has been very less and it is dropping off since then. In news from Financial Times, due to the less demand, the Chinese factories that assemble Apple devices are now decreasing their staff and also cutting their overtime. 

According to remarks by several workers at Foxconn’s factory in Zhengzhou, it is clear that the factory is not hiring new employees. The factory is also decreasing the number of staff by cutting down the temporary workers. The factory hired these temporary workers in February to ramp up the production.


Foxconn is now also encouraging employees to take holidays and not to work overtime. According to the workers in the factory, there have been no overtime since April 10. 

Besides Foxconn, Pegatron has also been decreasing its staff because of the falling demand. According to an employee working at the factory, the company fired almost 1000 employees including third-party workers. 

Apple is starting to reopen its stores. Recently Apple reopened in a retail store in South Korea.  However, there is no clear news or a timeline when the stores will reopen. Currently, employees are also working from home.