Foxconn Technology Group, which supplies Apple with components for iPhone, plans to cut costs with billions of pounds among concerns that iPhone growth in growth is slowing down.
The Taiwanese manufacturer will slash 20 billion yuan (£ 2.3 billion) from spending in 2019, Bloomberg News reported.
Foxconn faces "a very difficult and competitive year", according to an internal note. The company has to reduce spending in the iPhone operation by 6 billion yuan next year, says Bloomberg.
iPhone is a significant source of profit for the California-based Apple. Foxconn, owned by Hon Hai Precision Industry, plans to cut one out of ten non-technical employees and conduct a review of employees earning more than $ 1
Foxconn, which also supplies parts to other major technology companies like Google and Amazon, had revenues of 3.7 billion dollars in 2017. However, it has met criticism for its work practices, including an increasing dependence on disposable workforce.
Apple has been at the heart of a recent sale of US stock markets that led to the loss of billions of Wall Street's largest listed companies.
Apple shares rose by about 0.4% in morning trading in New York on Wednesday, after losing more than 20% since record high in early October, which made it a trillion dollar company.
At least four suppliers to Apple have recently cut income assumptions, referring to a decline in orders from major customers. Foxconn reported lower than expected earnings in the third quarter of the year.
Japanese media have also reported that Apple has withdrawn its orders for its lower iPhone XR, as Foxconn is a major assembler.
A Foxconn spokeswoman said: "We regularly review our global business. The review of our team this year is no different than similar exercises conducted in recent years to ensure we go into each new year with teams and budgets that are adapted to today's and expected needs of our customers, our global business and the market and economic challenges for the next year or two. "