Yahoo Finance iPhone maker Foxconn will cut $2.9bn in costs as tech gloom continues
Foxconn, the Taiwanese giant that assembles Apple iPhones, will cut billions of pounds in costs and reduce staff numbers by thousands as the global technology and smartphone slowdown continues.
One of the world's biggest employers with more than 800,000 staff across Taiwan and mainland China, Foxconn is set to reduce non-technical staff numbers by 10pc, according to Bloomberg.
That could involve thousands of job cuts at the iPhone assembler. The company said in an internal memo to staff that 2019 was set to be “a very difficult and competitive year” as it makes plans to reduce spending by $2.9bn.
The news will add pressure on global tech companies that have seen share prices sliding across sectors.
Smartphone suppliers have been badly hit in recent weeks. Last week four manufacturers believed to be Apple suppliers all reduced their revenue expectations. The world's smartphone market stalled over the past year as the market reaches saturation and fewer people replace their phones.
Apple, meanwhile, has seen its share price fall 20pc this year from its high of more than $1tn in market cap this summer. Apple shares were down 5pc in pre-market trading.
Foxconn assembles consumer technology from laptops to Playstations, but is best known for being Apple's main assembler at a plant in Zhengzhou, China, which has been nicknamed "iPhone city".
Yesterday, it was reported that five of the world's leading tech companies, the so-called FAANG group, had all fallen more than 20pc from their highest points this year. The share price move puts Facebook, Apple, Amazon, Netflix and Google into "bear" territory as the technology run on global stock markets appeared to come to an end.
Suppliers have seen the slowdown taking its toll. Lumentum, a company said to make parts for iPhones, said it was expecting a cut in orders. IQE, a UK-listed maker of chips for 3D sensors, saw its share price fall 28pc in one day earlier this month on similar news.
