Apple has announced it will shut down its $7.4 billion Apple iPhone manufacturing plant in Fremont, California, by the end of the year.
The decision was announced Wednesday by CEO Tim Cook, who has previously said the plant will be closed by the middle of 2018.
The plant employs about 4,000 people, and Apple said it will invest $200 million in its operations.
The move comes after years of delays in Apple’s plant expansion plans, and the closure comes as Apple looks to build a new $10 billion manufacturing facility in Michigan.
The company has been trying to get the $10bn project off the ground in recent months.
Apple’s Fremont factory employs about 100,000 workers, including the company’s employees and suppliers.
The news comes just a week after the company announced plans to build its new $50 billion factory in Austin, Texas, in 2019.
Fremont is the first major company to announce its plans to close its factory.
The announcement comes amid continued criticism of Apple’s manufacturing policies in the U.S.
The company’s move comes in the midst of a growing backlash against Apple’s corporate culture.
After the UBS Global Technology Index dropped the company to the bottom of the index, investors are also expressing concerns about Apple’s management of its global supply chain.
Earlier this month, a study from the Pew Research Center found that 61 percent of Americans believe the way Apple treats its workers is “very bad.”
The survey also found that a majority of respondents believe the company has not been honest about its wages and working conditions.
“It’s really about a culture of fear,” Michael DeLuca, the executive director of the Labor and Employment Alliance, a nonpartisan, nonprofit, labor organization, told Business Insider in March.
“If they are not able to build the factory, they can’t build the brand.”