Facebook parent Meta plans to begin large-scale layoffs this week that could affect thousands of its 87,000 employees as the tech industry struggles with changes in supply and demand, reversing massive growth seen during the covid pandemic.
iPhone maker Apple, the world’s most valuable company, said Sunday that it has reduced iPhone 14 production because of covid-19 restrictions at its main iPhone 14 assembly plants in Zhengzhou, China, where a zero-covid policy is still in effect.
Workers at the Apple factories have been jumping the facilities’ fences to avoid being locked up.
More than 85 percent of responding CEOs foresee a recession in the next year, according to KPMG’s latest CEO survey. The good news is almost 60 percent think it will be mild and short.
Economist Nouriel “Dr. Doom” Roubini, who predicted the 2008 financial crisis, is less optimistic. He predicted the recession is going to be “severe, long, and ugly.”
Apple said there is strong demand for the affected iPhone models, which are more expensive than others. The iPhone 14 was launched during an unprecedented slump in global electronics demand and fared better than other smartphone makers, but an anticipated surge in demand failed to materialize, Bloomberg reported. The company does most of its production at the Zhengzhou plants and signaled that the fourth quarter could see slower growth due to slower supply, CNBC reported.
Black Americans Have the Highest Mortality Rates But Lowest Levels of Life Insurance
Are you prioritizing your cable entertainment bill over protecting and investing in your family?
Smart Policies are as low as $30 a month, No Medical Exam Required
Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens
“It’s unusual for a company to make statements on Sundays, suggesting Apple expects these events to impact its trading results, something it must disclose,” Jonny Evans wrote for Computer World.
Apple expects to make 3 million fewer iPhones than it had anticipated, and is lowering its fourth-quarter outlook to factor in the lockdown, Bloomberg reported.
Apple has also paused hiring on many jobs outside of research and development.
The Facebook layoffs are expected to affect many thousands of employees and an announcement is planned as soon as Wednesday, according to the people familiar with the matter, Wall Street Journal reported. Company officials already told employees to cancel nonessential travel, the people said.
If Facebook goes forward with the expected layoffs, it will be the first broad head-count reduction in the company’s 18-year history and the largest to date at a major tech player, exceeding last week’s Twitter massacre, WSJ reported.