Foxconn employs over 800,000 staff in Taiwan and mainland China, but will cut non-technical staff by roughly 10 percent, Bloomberg reported on Wednesday.
It will be "a very difficult and competitive year" due to the crunch, tech giant Apple said in an internal memo as it plans to reduce its spending budget by £2.29bn ($2.9bn).
FAANG companies, or Facebook, Apple, Amazon, Netflix and Google, are the world's top five tech companies, with all seeing 20 percent drops in profits this year.
Last week, four of Apple's suppliers lowered their revenue expectations amid turmoil unfolding due to market saturation as well as US President Donald Trump's tariff battle with Beijing.
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California-based supplier Lumentum is expecting cuts in orders and British chipmaker IQE lost 28 percent of stocks in one day, The Telegraph reported.
Foxconn, a Taiwanese company with operations in Zhengzhou, PRC, is one of the world's largest assemblers of laptops, mobiles, gaming consoles and other electricals. Taiwan is considered an inseparable province of China.