American tech major Apple giant Apple is laying off over 600 employees in California, marking its first significant job cuts since the Covid-19 pandemic. This news comes after Apple ended two major projects: its self-driving electric car initiative and its next-gen display development program.
The layoffs, effective May 27, reportedly impact eight locations in Santa Clara and primarily target staff who worked on these discontinued projects. While some employees are reportedly transitioning to AI or robotics teams, the shuttering of these ambitious efforts has resulted in job losses.
Apple’s car project, codenamed “Project Titan,” began in 2014 but faced challenges like leadership indecision and high costs. In 2019, Apple laid off over 200 employees working on Project Titan, a clear indicator of the mounting difficulties faced by the initiative. Despite having a deep talent pool of over 2,000 employees and an estimated $10 billion investment, the project ultimately failed to yield a tangible product.
Apple’s display project, on the other hand, intended to develop new screens for the Apple Watch and potentially other devices, encountered engineering and supplier hurdles. Last month, it was reported that the Tim Cook-led company halted its ambitious project to develop microLED displays due to the complexity and high costs associated with it. It was also reported at the time that the tech major begun restructuring its display engineering teams, resulting in lay offs of employees both in the U.S. and Asia.
Meanwhile, Apple’s restructuring move aligns with a broader trend of tech industry consolidation. While the iPhone maker remained relatively unscathed during the pandemic hiring boom, slower growth necessitates cost-cutting measures. The company joins the likes of Amazon, Electronic Arts, Sony, Cisco, and Snap in recent workforce reductions, citing economic slowdowns and the need to adapt to changing market conditions. According to data by Crunchbase News at least 31,971 workers at U.S.-based tech companies have lost their jobs so far this year. Over 191,000 workers were laid off in the tech sector in 2023, it added.
