Foxconn Stops Recruitment, Moves To Robots: Report

Foxconn, the manufacturer of Apple (AAPL) iPhones and Amazon (AMZN) Kindles in China, has stopped hiring workers at its key Zhengzhou and Shenzhen plants in what may be a shift toward robotic production, a Chinese news report said Wednesday.

CBN Daily, in a story picked up by other Chinese media, quoted insiders as saying that the recruitment freeze is being done to adjust the production line and prepare for "artificial intelligence production."

Taiwan-owned Foxconn's Henan Employment Center in central China is said to have a notice saying that due to production line adjustments, recruitment has been changed. The Zhengzhou plant, which is located in Henan province, also is said to have halted hiring since December and no large-scale recruitment is expected until June. The Shenzhen plant is situated north of Hong Kong in southern China.

A worker at the Henan Employment Center reportedly said the recruitment suspension might have something to do "with the diminished output of iPhone 5."

Reports since late last year have said that Foxconn has been gradually installing robots on its production lines in Zhengzhou and Shenzhen to improve production of Apple and other devices. Foxconn also has announced plans to install 10,000 robots on its factory lines that could replace up to 1 million workers over several years.

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