Mass layoffs at Foxconn jeopardise iPhone production
More than 20 000 workers have left the Foxconn factory in Zhengzhou where the iPhone 14 Pro is manufactured. There could therefore be delivery problems. The wave of layoffs is the result of restrictive lockdowns due to a Corona outbreak at the production facility.
Foxconn subsequently promised workers bonuses if they stayed, but apparently did not pay them. At the same time, an even more restrictive lockdown was imposed on the factory. This led to mass protests and violent clashes with the security forces.
To stop the unrest, Foxconn offered severance pay of one to two months' wages to protesters who wanted to quit. More than 20 000 apparently accepted the offer and left the factory. These were mainly newly hired workers. In total, more than 200,000 people work in the "iPhone City" in Zhengzhou. It is the only factory where Apple's premium smartphones iPhone 14 Pro and iPhone 14 Pro Max are manufactured.
The loss in production capacity comes at the worst possible time for Apple - just before the important Christmas shopping season. The iPhone maker's stock fell two per cent after the wave of layoffs was announced.
Titelbild: Shutterstock
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