Foxconn, the main manufacturing partner for Apple, will reduce its huge workforce in the face of higher labor costs and lower revenues. The move comes even as Apple is expecting to reveal high sales for its iPhone 6 and iPhone 6 Plus later today, both of which are made at Foxconn factories.
The company currently employs up to 1.3 million workers at peak manufacturing times. However, according to Reuters, even Foxconn has to deal with higher wages for its China-based workers. It states:
Special assistant to the chairman and group spokesman Louis Woo did not specify a timeframe or target for the reduction, but noted that labor costs had more than doubled since 2010, when the company faced intense media scrutiny following a spate of worker suicides. "We've basically stabilized (our workforce) in the last three years," Woo said. When asked if the company plans to reduce overall headcount, he responded "yes".