Apple CEO Tim Cook has announced the company’s decision to scale back on two major projects, resulting in staff cuts. More than 600 employees in California have been laid off as Apple focuses on its electric car and screen projects. The layoffs were caused by cost overruns and delays with these ambitious initiatives.
The company filed notices with the state indicating the layoffs for various Santa Clara offices in late May. Some of the affected offices were involved in a new display development office, while others were focused on the electric car project. The layoffs may be just the initial wave, as Apple had staff working on these projects in different states and countries. Some employees were reassigned to other projects within the company, particularly those related to artificial intelligence.
Apple’s decision to wind down its electric car project came after struggles with cost overruns and launch delays. This was part of a larger trend in the industry, where technology, profitability, and consumer interest have posed challenges for electric vehicle development. Additionally, Apple decided to abandon its efforts to produce next-generation screens for the Apple Watch in-house due to similar issues with cost overruns and delays.
Despite these setbacks, Apple remains a large employer with 161,000 full-time employees as of September 30. The company’s focus on artificial intelligence and other emerging technologies reflects a shift in strategy following the discontinuation of these two major projects. Apple did not respond to a request for comment on the layoffs and project cancellations.
