Apple has downsized its workforce by over 600 employees amid speculation about abandoning its self-driving car initiative.
The California site, previously dedicated to Apple’s self-driving car project, has seen the highest number of layoffs, according to Bloomberg’s investigation.
Notification was sent to the state’s employment agency on March 28 regarding the impending layoff of 614 employees in May. Apple has been approached for their perspective.
In contrast to the widespread job cuts witnessed across various industries during the pandemic, the tech giant has maintained a policy of steering clear from mass layoffs in recent times. Apple CEO Tim Cook reaffirmed this stance in a CNBC interview last May, stressing that layoffs would only be contemplated as a last resort.
According to layoffs.fyi’s tracking, the tech field has recorded more than 50,000 job reductions in 2024. Leading companies such as Amazon, Google, Microsoft, Snap, and PayPal have all made announcements regarding workforce downsizing.
Unlike its competitors, Apple has implemented significantly fewer layoffs. GlobalData reports that the company maintains a global workforce of around 161,000 individuals.
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Apple is the world’s most valuable company – but “no one is immune to job cuts,” says industry analyst Paolo Pescatore of PP Foresight.
“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,” says Mr Pescatore.
“It feels more like a shift of strategic focus into other new emerging areas like AI,” he adds.
Speculation surrounding Apple’s abandonment of its multi-billion-dollar investment in its self-driving car project began circulating in February. However, the company has refrained from publicly acknowledging the endeavor.
It has been reported that Apple poured billions of dollars into the research and development of a fully autonomous vehicle, featuring no steering wheel or pedals. Nevertheless, industry observers noted that the timeline for bringing such a vehicle to market was still years into the future.
In light of mounting costs, industry giants such as Ford and General Motors have taken a step back from their autonomous vehicle endeavors. Recent reports suggest that Apple is set to transfer a significant portion of its 2,000-strong electric car division to focus on AI projects.
A distinct entry in California’s employment documentation reveals that Apple laid off 121 individuals at its San Diego facility in January. Bloomberg’s investigation suggests that this team specialized in AI initiatives and employees were urged to transfer to Austin, Texas.