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Huawei Concerns Prompt U.S. Manufacturing Giant to Lay Off 10,000 In China

By Peng Yanfeng and Mo Yelin / Aug 05, 2019 03:05 PM / Business & Tech

Photo: VCG

Photo: VCG

American tech manufacturer Flex has laid off more than 10,000 workers in China due to geopolitical risks relating to Huawei, Caixin has learned.

It has pared back business with clients after suspending production at two of its largest facilities in China — the latest one in the southern city of Zhuhai, in Guangdong province, a source close to Flex told Caixin. A Flex factory in Changsha, Hunan province, had already halted productions earlier this year, Caixin reported last month.

Flex’s Zhuhai factory was made up of two units — a southern and northern block, with the former entirely focusing on assembly business for Huawei smartphones. Production at that southern block has gone idle, leading to a massive layoffs, Caixin has learned.

Flex had previously said it would reduce its business with Huawei following a U.S. government blacklist in May that limited the Chinese telecom giant’ engagement with American companies.

A previous version of this article misstated the suspension of production at Flex's factories.

Related: U.S. Contract Manufacturer Flex Pares Back Ties With Huawei

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