Apple Lays Off 600 Employees Amid Project Scraps, Restructuring: Report
Tech giant Apple has made significant organisational changes, resulting in the layoff of 600 employees across its self-driving car and smartwatch screen projects, as reported by Bloomberg on Friday.
The company's decision to terminate both projects earlier this year has led to workforce reductions, with the affected employees primarily based in California.
According to Bloomberg, Apple filed multiple reports with the state of California as part of the Worker Adjustment and Retraining Notification (WARN) program, which requires companies to notify the state regarding layoffs. The filings revealed that a substantial number of employees, including 371 from the main car-related office in Santa Clara, were impacted, along with those from satellite offices.
While layoffs at Apple are uncommon compared to other tech giants, the company has undertaken this action amidst global macroeconomic volatility. In 2022, Apple reduced its workforce by sacking approximately 100 contract-based recruiters and slowed down hiring activities due to unfavorable market conditions.
The restructuring efforts have not only resulted in layoffs but also in the reallocation of resources. Some members of the Apple car project have been reassigned to different teams within the company, such as artificial intelligence and personal robotics, indicating a shift in focus and priorities.
Meanwhile, Apple's CEO Tim Cook has expressed optimism about the potential of generative artificial intelligence (AI) and the company's significant investments in this area. Cook stressed the transformative opportunities that generative AI could offer in terms of productivity and problem-solving during the company's recent shareholder meeting.
Apple is expected to unveil its plans for integrating AI into its products at its annual developer conference WWDC, scheduled for 10 June this year. Reports also suggest that Apple is in discussions with both Google and OpenAI to enhance its iPhone AI features, signaling the company's commitment to advancing its AI capabilities through strategic partnerships.
