Apple cuts over 600 employees in California as it scales back electric car and screen projects

Apple has made the decision to lay off more than 600 employees in California as part of its strategic shift away from two major initiatives. The layoffs come after facing challenges with cost overruns and delays in its electric car and screen projects.

Transition to Artificial Intelligence Division

Some of the affected employees have been transitioned to Apple's expanding artificial intelligence division. This move reflects the company's redirection of resources following the retreat from its ambitious projects.

Scope of Layoffs

According to filings with the state, Apple has implemented the layoffs in various Santa Clara offices, with effective dates in late May. One of the impacted offices was dedicated to a new display development project, while others were linked to the electric car initiative.

It is worth noting that the reported number of layoffs may not fully capture the extent of the workforce reduction, as Apple had employees working on these projects across different states and countries. Despite this, some employees were retained and reassigned to different roles within the company.

Project Winding Down

In late February, Apple informed around 2,000 employees involved in the electric car project that operations would be winding down. This decision was driven by challenges such as cost overruns and delays in launching the project. As a result, a portion of the workforce was redirected to support the artificial intelligence division.

Challenges Faced

The electric vehicle project encountered obstacles related to cost overruns, technological complexities, and market readiness. Similarly, Apple opted to discontinue its in-house development of advanced screens for the Apple Watch due to similar issues with cost management and project timelines.

As of September 30, Apple had a total of 161,000 full-time employees, according to its annual report. The company did not provide a response to inquiries from Business Insider outside of regular business hours.

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By: insider@insider.com (Meghan Morris)
Title: Apple cuts over 600 employees in California as it scales back electric car and screen projects
Sourced From: www.businessinsider.com/apple-cuts-600-california-jobs-after-electric-vehicle-screen-retreats-2024-4
Published Date: Fri, 05 Apr 2024 02:14:44 +0000