Apple to cut 50 percent jobs in iPhone final assembly line, here is why
Apple to cut 50 percent jobs in iPhone final assembly line, here is why
In a significant shift towards automation, Apple plans to cut jobs in its iPhone final assembly lines by up to 50 per cent over the next few years. This strategic move, revealed in a report by The Information, suggests that the company wants to improve efficiency and reduce its reliance on human labour in its manufacturing processes.
The directive to cut jobs was reportedly issued by Sabih Khan, Apple's Senior Vice President of Operations, following violent protests outside Foxconn's primary assembly plant in Zhengzhou, China, in November 2022. The unrest highlighted the vulnerabilities of heavy reliance on human labour in Apple's extensive supply chain, prompting a re-evaluation of its production strategies.
As part of its strategy, Apple is reportedly intensifying its efforts to automate various aspects of the iPhone assembly process. This includes reviving previously shelved automation projects. The automation machinery required for these processes requires a big investment, costing hundreds of millions of dollars annually. The report suggested that Apple has encouraged its manufacturing partners, such as Foxconn, Luxshare Precision, and Pegatron, to make upfront investments in this.
The move towards automation has already shown significant results because Apple has already entered into this business. Data from Apple's annual supply chain reports indicate a reduction in the workforce it monitors for work-hour compliance, from 1.6 million in 2022 to 1.4 million in 2023. This reduction shows the early impact of Apple's push towards reducing human involvement in its production lines.
Peter Thompson, Apple's Vice President of Operations, is spearheading the automation initiatives. His team has made considerable progress over the past year, successfully implementing machines that can install metal brackets and flexible printed circuit boards without human assistance. These technological advancements have enabled Apple and its partners to eliminate thousands of jobs in China, with some processes seeing headcount reductions of up to 30 per cent, according to the report.
Adding to its automation capabilities, Apple has made strategic acquisitions such as DarwinAI and Drishti. DarwinAI's artificial intelligence expertise and Drishti's real-time video analysis of assembly lines are important in identifying production bottlenecks and improving the efficiency of Apple's manufacturing processes.
However, the path to full automation is fraught with challenges. For instance, Apple's plan to automate the installation of buttons and other components for the iPhone 16 was abandoned due to a high defect rate. Despite these setbacks, Apple's long-term goal remains clear: to reduce the number of workers on its final assembly lines by half.