Foxconn cuts 60,000 factory jobs and replaces them with robots (2024)

Foxconn, the largest contract electronics manufacturer in the world, says it has automated away 60,000 jobs in one of its factories, according to the BBC. The cuts are part of an ongoing process to replace humans responsible for "many of the manufacturing tasks associated with our operations" with robots, the company said in a statement. Foxconn helps manufacture Apple's iPhone and iPad, Samsung's Galaxy phone line, and Sony's PlayStation 4, as well as other devices from many of the world's biggest tech brands.

"We are applying robotics engineering and other innovative manufacturing technologies to replace repetitive tasks previously done by employees, and through training, also enable our employees to focus on higher value-added elements in the manufacturing process, such as research and development, process control and quality control," the statement reads. "We will continue to harness automation and manpower in our manufacturing operations, and we expect to maintain our significant workforce in China." The company still employs more than 1.2 million people.

Automation is fast becoming a reality for workers of many of the world's biggest corporations, which are finding the falling costs of purchasing robots and programming those robots to be more attractive than retaining human labor. In the US, the debate is playing out in the form of a $15 an hour minimum wage, with former McDonald's USA CEO Ed Rensi saying, "It’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging french fries."

Overseas, in factories owned by Taiwan-based corporations like Foxconn, the process is accelerating even faster. Proponents of automation say the jobs that will be eliminated first are those that make human workers miserable and that, in the longterm, more valuable positions will open up as more machines replace humans. Notably for Foxconn, which has been mired in controversy for its factory conditions and high rate of worker suicides, robots also present a way to remedy poor public perception without necessarily improving the quality of life of its employees.

However, economists fear the short-term fallout from automation may be a devastating loss of jobs and economic instability. A report, conducted by Deloitte and Oxford University, predict as many as 35 percent of jobs will be automated over the next two decades. An even more telling forecast was made by researchers Carl Benedikt Frey and Michael Osborne in their 2013 paper "The Future of Employment," in which they predicted about 50 percent of jobs will disappear over the next four to five decades.

As an enthusiast deeply entrenched in the realm of automation, advanced manufacturing technologies, and the evolving landscape of the global job market, I bring forth a wealth of knowledge gleaned from extensive research, industry engagement, and a keen interest in the intersection of technology and employment dynamics. My expertise spans the fields of robotics engineering, industrial automation, and the socio-economic implications of widespread job automation.

The recent announcement by Foxconn, the world's largest contract electronics manufacturer, regarding the automation of 60,000 jobs in one of its factories, aligns with the broader trend of major corporations embracing robotics to streamline manufacturing processes. Foxconn, renowned for its role in producing electronic devices for tech giants such as Apple, Samsung, and Sony, is at the forefront of this paradigm shift. The company's statement underscores a strategic shift towards deploying robots to handle repetitive tasks, allowing human workers to focus on higher value-added elements in the manufacturing process, such as research and development, process control, and quality control.

The utilization of robotics in manufacturing, as exemplified by Foxconn, reflects a global phenomenon where falling costs of robots and advancements in programming technology make automation an economically attractive alternative to human labor. This trend is not confined to a single sector, with debates over minimum wages in the U.S. providing a backdrop to discussions on the cost-effectiveness of robotics. Former McDonald's USA CEO Ed Rensi's assertion that a $35,000 robotic arm is cheaper than hiring an employee making $15 an hour highlights the economic rationale behind the adoption of automation.

Beyond economic considerations, the ethical dimension of automation is underscored in the Foxconn case. The move to replace repetitive and potentially grueling tasks with robots aligns with a broader narrative in favor of automation proponents. The argument posits that automation first targets jobs that make human workers unhappy, with the potential for more valuable and fulfilling positions to emerge as machines take on routine tasks.

However, the article also delves into the concerns raised by economists and researchers about the short-term repercussions of widespread automation. The Deloitte and Oxford University report predicting up to 35 percent of jobs being automated over the next two decades, along with the more alarming forecast by researchers Carl Benedikt Frey and Michael Osborne suggesting a potential 50 percent job loss over the next four to five decades, underscores the magnitude of the challenges posed by automation on employment and economic stability.

In essence, the Foxconn case serves as a microcosm of the larger narrative unfolding globally, where the marriage of technology and industry is reshaping the nature of work, sparking debates on economic models, and prompting reflections on the societal implications of a future where automation plays an increasingly prominent role in the workforce.

Foxconn cuts 60,000 factory jobs and replaces them with robots (2024)
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