Apple Inc. has made headlines with its recent announcement of job cuts affecting over 600 employees in California, marking its first significant round of layoffs in the post-pandemic era.
This move aligns with a broader trend within the tech industry, where companies are focusing on reducing costs and enhancing their financial performance.
The affected employees received notification on March 28, informing them of their impending job losses, with the layoffs set to take effect on May 27, 2024.
Reportedly, most of the cuts originate from eight offices in Santa Clara, which was previously engaged in the now-abandoned self-driving car project as well as its next-generation screen development.
Tech companies’ layoff surge
While Apple has historically avoided mass layoffs compared to its competitors in the industry, it has not been completely immune to job cuts.
Notably, the tech industry as a whole has witnessed more than 50,000 job cuts in 2024, with companies such as Amazon, Google, Microsoft and PayPal having also announced layoffs in 2024.
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However, Apple has laid off fewer employees in comparison to its high-profile competitors. According to GlobalData, Apple’s global workforce stands at approximately 161,000 employees.
Tech Analyst’s reaction
Industry analyst Paolo Pescatore of PP Foresight notes that while Apple’s job cuts are significant, they are not driven solely by the need for efficiencies.
Pescatore suggests that Apple’s shift in strategic focus towards emerging areas like AI plays a role in the decision.
“Apple is the world’s most valuable company but no one is immune to job cuts.”
“While this might seem significant given that it relates to Apple as one of the last big tech giants to make job cuts, it is not driven by the need for efficiencies,” said the analyst.
“It feels more like a shift of strategic focus into other new emerging areas like AI.”
Apple’s project titan
Reports surfaced in February indicating Apple was abandoning of its multi-billion-dollar investment in the self-driving car project, though the company has never publicly acknowledged its existence.
Apple had reportedly invested billions in research and development for a fully autonomous vehicle without traditional controls.
The Project called Project Titan, was an initiative that had been in development since 2014.
It was initially shrouded in secrecy and surrounded by intense speculation, with Apple exploring various aspects of automotive technology, including electric vehicle technology, and advanced futuristic car designs.
The company reportedly even hired high-profile individuals from the automotive industry and filed several patents related to vehicle technologies.
Apple in AI race
Apple’s move to cut jobs coincides with its preparation for the annual developer conference, Worldwide Developers Conference (WWDC), scheduled for June 10.
The company is expected to announce advancements in AI integration across its platforms, including iOS, iPadOS, and macOS.
Also Read: Amazon Announces Mass Layoffs in Select Departments
Reports indicate that Apple is exploring partnerships with Google and OpenAI to enhance its iPhone AI features.
These layoffs mark a significant shift in the tech industry amidst ongoing consolidation efforts.
