In a significant shift towards automation, Apple is planning to cut jobs on 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 in its manufacturing processes and reduce its reliance on human labour.

The directive to cut jobs was reportedly issued by Apple’s senior vice president of operations, Sabih Khan, following violent protests outside Foxconn’s primary assembly plant in Zhengzhou, China, in November 2022. The unrest exposed the vulnerabilities of Apple’s heavy reliance on human labor across its extensive supply chain, leading to a reevaluation of its production strategies.

As part of its strategy, Apple is reportedly ramping up its efforts to automate various aspects of the iPhone assembly process. This includes restarting previously stalled automation projects. The automation machinery needed for these processes requires large investments, costing hundreds of millions of dollars annually. The report suggests that Apple has encouraged its manufacturing partners, such as Foxconn, Luxshare Precision, and Pegatron, to invest in this upfront.

The move towards automation has already shown significant results as Apple has already entered this business. Data from Apple’s annual supply chain report shows 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 reflects the early impact of efforts made by Apple towards reducing human involvement in its production lines.

Peter Thompson, Apple’s vice president of operations, is leading the automation initiatives. His team has made great strides in the past year, successfully implementing machines that can install metal brackets and flexible printed circuit boards without any human assistance. According to the report, these technological advancements have enabled Apple and its partners to eliminate thousands of jobs in China, with some processes seeing a reduction in staff numbers by up to 30 percent.

Enhancing its automation capabilities, Apple has made strategic acquisitions such as DarwinAI and Vision. DarwinAI’s artificial intelligence expertise and Vision’s real-time video analysis of assembly lines are critical in identifying production bottlenecks and improving the efficiency of Apple’s manufacturing processes.

However, the path to full automation is fraught with challenges. For example, Apple’s plan to automate the installation of buttons and other components for the iPhone 16 was abandoned due to high defect rates. Despite these setbacks, Apple’s long-term goal is clear: to reduce the number of workers on its final assembly lines by half.