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CNC mill, probably the same thing they use to drill the holes.
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You can either let the manufacturer do the 'panelizing' for you, or you can do it yourself.
More info from the great EEVBlog
PART1: https://www.youtube.com/watch?v=VXE_dh38HjU
PART2: https://www.youtube.com/watch?v=Uemr8xaxcw0
PART3: https://www.youtube.com/watch?v=2zGisPMNstI
Most use the same drill as they do for through holes and vias etc. That way, you only align the panel once.
EDIT: Didn't know this forum embedded videos, sorry for wasting so much vertical real estate with this
Love the PCB for the Pico @Gordon, lovely solder mask too <3
DrAzzy
alexanderbrevig
@d0773d
Very nice! How do the pcb board manufacturers create a panel like that where the designer has the ability to "snap" the individual boards off the larger board? PCB manufacturing seems like magic to me.