subscribe: Posts | Comments | Email

Reports of Foxonn Freezing Hiring in China Have Broader Implications

1 comment

The Financial Times is today reporting that global contract manufacturer Foxconn has imposed recruitment freeze across most of its factories in China because of production slowdowns involving Apple’s iPhone5. The current freeze is in effect until at least the end of March. In its reporting, FT indicates that hiring has stopped for both the iPhone and iPad production lines in Shenzhen and Zhengzhou. Both iPhone and iPad component parts plants in Taiyuan and Chengdu is additionally mentioned. FT attributes this hiring freeze as an indication of weakening demand for Apple products. The fact that this announcement is timed after the Chinese Lunar New Year holiday, when migrant production workers typically do not return to factory jobs is being taken as an indicator that headcount reductions could be more pronounced in the coming weeks. Naturally, Wall Street investors responded negatively to this development.  Of late, Apple stock has been rather volatile […]