Story by Callum Keown | Barron’s | Posted 4/5/24
pple plans to lay off more than 600 workers in California, weeks after scrapping its electric car and smartwatch display projects.
The tech giant filed a number of notices to the state detailing the planned job cuts, Apple’s first significant layoffs since the pandemic. The workers, based across eight offices in Santa Clara, were told on March 28 and the layoffs are effective from May 27, according to the filings.
While it’s not clear which projects the layoffs relate to, Santa Clara was home to the company’s secretive car project and next-generation screen development, Bloomberg reported.
The closure of both projects in recent weeks is a blow to Apple and makes the success of its next big idea even more crucial—particularly as its looks to develop its artificial-intelligence credentials. The stock has been under pressure this year and Apple may need an AI innovation to turn that around.
When Apple closed down its secretive EV project, The Wall Street Journal reported that the company planned to shift resources to focus on developing generative artificial-intelligence software instead.
The company could now be turning toward personal robotics, according to Bloomberg.
As other tech companies implemented aggressive job cuts last year, CEO Tim Cook said mass layoffs would be a “last resort.” It also didn’t embark on the pandemic hiring spree as its Big Tech peers.
Apple stock has had a tough start to 2024, falling 12% this year through Thursday’s close. The shares rose 0.4% in early trading Friday, while Microsoft rose 1%, Meta Platforms climbed 1.6%, and Alphabet was up 1.4%.
Apple didn’t respond to a request for comment from Barron’s Friday.