Apple fired 600 employees after canceling its EV, smartwatch projects
Apple terminated over 600 employees following the discontinuation of its electric car and smartwatch display projects, which were phased out at the end of February. These initiatives were previously seen as ambitious attempts to enhance existing technologies or penetrate significant new markets. Employee details have surfaced from documents submitted to the California Employment Development Department. Apple submitted eight separate reports to comply with the Worker Adjustment and Retraining Notification (WARN) program.
Reasons behind project discontinuation and job cuts
The car project was discontinued due to executive indecision about its direction and concerns over costs. Similarly, the smartwatch display project faced engineering, supplier, and cost challenges leading to its termination. As a result of these decisions, 371 employees from Apple's primary car-related office in Santa Clara were laid off along with several others from various satellite offices.
Employee reassignments and further layoffs
Of the total layoffs, 87 employees were from a location associated with a covert Apple facility for next-generation screen development. The remaining affected employees were from locations linked to the car project. Some members of the Apple car team were reassigned within the company to areas such as artificial intelligence or personal robotics. However, these figures only account for job losses in California, suggesting potential additional layoffs in other regions.
Apple's shift toward generative AI projects
In response to these changes, Apple is now focusing on generative AI projects. During a recent investor call, CEO Tim Cook highlighted the company's ongoing work in this area and its commitment to responsible use of this technology. Evidence of this shift can be seen in various job postings for generative AI roles by the company. This move toward AI was further emphasized by Apple's acquisition of DarwinAI, an artificial intelligence start-up.
