Apple Inc's Supplier Foxconn Freezes Hiring At Largest Plant

Category: Companies / Feb 21, 2013 3:09PM EDT
Apple Inc's manufacturing partner Foxconn Technology Group has frozen hiring at a plant that makes gadgets including the iPhone 5 and put the brakes on recruiting for other factories across China, but said the move was not linked to any single client. Foxconn runs a network of factories across China that make products for tech companies from Hewlett Packard to Dell. It sought to pour cold water on a Financial Times report that it had imposed a hiring freeze while it slows production of Apple's latest smartphone. The company said in a statement that it has "temporarily slowed down recruitment due to an unprecedented rate of return of employees following the Chinese New Year holiday compared to years past". Like other Chinese contract manufacturers, Foxconn relies on a large number of migrant workers from across the country who journey home for the most important holiday of the year. Many do not make it back to work, but a Foxconn spokesman said this year they saw as many as 97 percent of employees return. Apple sold a less-than-expected 47.8 million iPhones in the 2012 holiday quarter. The iPhone is Apple's most important product, accounting for half its revenue. Video Source: Reuters