Apple Cutting over 600 Employees in California as it Retreats from Electric Car and Screen Projects, with Some Moved to AI Division

Apple is cutting over 600 employees in California as it retreats from two major projects, according to filings with the state. The layoffs follow struggles with cost overruns and delays in the company’s electric car and screen projects. Some employees were moved to the company’s growing artificial-intelligence division.

In late February, Apple told the 2,000 employees working on its electric car project that the project would wind down. Some staff were kept on and reassigned to other projects. The company also decided to sunset its attempt to make next-generation screens for the Apple Watch in-house, which was similarly stymied by cost overruns and launch delays. Despite these challenges, Apple employed 161,000 people full-time as of September 30, as per its annual report.

The layoffs are likely an undercount of the full scope of staff cuts because Apple had staff working on these projects in other states and countries. Bloomberg reported that one of the addresses where layoffs were filed was home to a new display development office, while others were for the company’s electric car effort. It’s unclear exactly how many employees will be affected by these cuts or if they will be able to find new jobs in the industry.

Apple has been grappling with broader challenges facing many tech companies today, including rising costs and dwindling consumer interest in certain products. However, some experts believe that AI is becoming an increasingly important area of focus for many tech companies, including Apple. In recent years, the company has been investing heavily in this area and has even created a dedicated team of engineers working exclusively on AI projects.