Apple Lays Off Over 600 in California After Scrapping Self-Driving Car Project
April 6, 2024 Science & Technology
Santa Clara – Apple Inc. announced layoffs impacting over 600 employees across eight Santa Clara offices, marking the company's first significant workforce reduction since the pandemic. This news comes amidst a broader trend of tech industry consolidation.
California Layoffs Mark Shift for Apple
According to Worker Adjustment and Retraining Notification (WARN) Act filings, Apple notified the affected employees on March 28th, 2024, with the terminations scheduled to take effect on May 27th. Specific departments or projects impacted by the layoffs remain unclear.
Troubled Electric Vehicle Program
The announcement follows Apple's February 2024 decision to scrap its electric car project, reportedly worth billions of dollars. The company then indicated a shift in resources towards artificial intelligence initiatives, with potential workforce reductions expected.
Apple's self-driving car project, originally aiming for a fully autonomous vehicle, faced consistent delays, missed deadlines, and staff turnover, ultimately leading to its cancellation. While the company hasn't officially commented on the layoffs, some employees expressed surprise at the project's complete shutdown, according to Bloomberg.
Tech Industry Sees Job Cuts
Apple stood out among major tech companies that implemented workforce reductions over the past two years. The COVID-19 pandemic fueled a surge in hiring as online activity increased. While tech giants remain larger than pre-pandemic levels, slowing growth pressures them to cut costs.
A recent regulatory filing revealed Apple's global full-time equivalent workforce sits at roughly 161,000 employees.
This news follows recent layoffs announced by other tech giants including Amazon in its cloud computing division (AWS), Electronic Arts reducing 5% of its workforce, Sony cutting 900 jobs in its PlayStation division, Cisco Systems planning to lay off over 4,000 employees, and social media company Snap Inc. announcing a 10% global workforce reduction.