Recently, Apple CEO Tim Cook has made the decision to abandon two major projects, resulting in staff cuts within the company. Over 600 employees in California have been laid off as a result of challenges with cost overruns and delays in both Apple’s electric car and screen projects. The layoffs were reported in filings with the state of California, with notices about the job cuts being effective in late May for various Santa Clara offices. One of the affected offices was dedicated to display development, while others were related to the electric car effort.
Some employees who were affected by these layoffs have been relocated to Apple’s growing artificial intelligence division. The total number of staff cuts may be higher than reported, as employees working on these projects were located in other states and countries. Employees working on the electric car project were informed in late February that the project was coming to an end, and some of them were reassigned to the artificial intelligence division. Both projects faced cost overruns and launch delays, leading to Apple’s decision to pull back from them.
Apple’s decision to step back from these ambitious projects is reflective of the company’s broader struggle with technology, profitability, and consumer interest. The company chose to end its efforts to create next-generation screens for the Apple Watch in-house due to similar challenges faced by the electric car project. As of September 30, Apple employed 161,000 people worldwide according to its annual report. However, this figure does not reflect any changes resulting from these recent layoffs.
