iPhone production is said to drop 30% after the Foxconn factory in China was interrupted

iPhone production could drop by at least 30% at Foxconn’s factory in the Chinese city of Zhengzhou after worker unrest disrupted operations, a person with direct knowledge of the matter said. on the matter told Reuters on Friday. This estimate is an upward revision of an October internal forecast for a production impact of up to 30% at the world’s largest iPhone factory, the source said.

The source added that, following a worker riot at the factory this week, the company was “unable” to resume full production by the end of the month – a deadline the company has set internally in the wake of the wave. protest on Wednesday.

Foxconn declined to comment.

Earlier on Friday, Reuters report that more than 20,000 employees, most of whom are new employees who have not yet worked on the production line, have left Apple Foxconn supplier at the Zhengzhou plant in China, citing a Foxconn source familiar with the matter. The person said the departure would complicate the company’s previous goal of resuming full production by the end of November, after worker unrest rocked production at the largest company. world. Iphone factory.

Foxconn has sorry for making a pay-related “technical error” when hiring new employees, which workers say was a factor in protests involving clashes with security personnel.

Workers’ unrest at the Zhengzhou factory that began on Wednesday marked rare scenes of public dissent in China that workers say prompted the demands. overdue pay and severe salary frustration. COVID-19 limitations.

Meanwhile, a second Foxconn source familiar with the matter said some new employees had left the campus but did not specify how many. This person said the departure will not affect current production, as new employees still need to attend training courses before working online.

Foxconn launched a recruitment drive earlier this month with the promise of bonuses and higher wages after it had to enact measures to limit the spread of COVID-19 in October. The curbs forced the company. Many employees had to be quarantined, and factory conditions led some to flee.

© Thomson Reuters 2022


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