iPhone assembler Foxconn intends to slash 20 billion yuan ($2.9 billion) from its costs next year, according to Bloomberg.
Foxconn, which is the primary manufacturer of Apple's iPhones, predicts that 2019 will be a "very difficult and competitive year," Bloomberg reported Wednesday, citing an internal company memo.
The company cuts include a 6 billion yuan ($865 million) reduction in its iPhone-related expenses specifically, Bloomberg noted. It also intends to cut about 10 percent of its non-technical staff and review managers with annual salaries over $150,000.
Its expenses in the past year were about $6.7 billion, according to Bloomberg.
This news follows a Monday report that Foxconn had cut overtime hours typically available for workers after Apple reduced production orders for its, and . Earlier this month, Apple hinted that the immediately after their September release.
Neither Apple nor Foxconn immediately responded to requests for comment.
Over the summer, President Donald Trumpto build a new $10 billion electronics manufacturing plant in Wisconsin.
First published at Nov. 21 at 4:36 a.m. PT.
Update, 5:10 a.m. PT: Adds more details and background.
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