According to the Financial Times, Foxconn has frozen hiring at its factories in China as it slows down production of the iPhone 5. It's the first hiring freeze since 2009, and many believe that "declining demand" for Apple products is to blame. However, are Apple devices really to blame for the freeze?
Foxconn spokesman Liu Kun said that none of the factories have any hiring plans and that the company will currently halt them until the end of March.
Back in 2009, the company's workforce was 800,000, but it rose to 1.2 million last year due to the iPhone 5. Now, they're blaming "decreased demand" for the device because Foxconn no longer needs any more workers.
Is the iPhone 5 really to blame?
No, according to Liu, who told Bloomberg that the decision has nothing to do with iPhone 5 production. Liu said that more employees than expected returned to the company after the Chinese New Year break, which is why they were forced to not hire everyone.
In China, workers typically change jobs after the Lunar New Year break, so employers are bracing for staff shortages as people decide not to return to work in the same place. However, Foxconn saw more people return than last year, and the company didn't expect it.
So ultimately it's not the iPhone 5 and its "decreased demand" that's to blame. But it's probably the way the system works in China.
Dimitrios Georgoulas @ GreekAppleNews
