In a surprise move, tech behemoth Apple announced it will lay off over 600 employees in California, marking the company’s first major post-pandemic job cuts. The impacted workers come from eight offices in Santa Clara County and were notified of the impending terminations on March 28, with the layoffs set to take effect on May 27.
Apple’s workforce reduction comes amid a broader wave of tech industry consolidation as companies focus on cutting costs. However, recent reports suggest that this round of cuts may be attributed to Apple’s abandonment of its electric car project, Project Titan.
The layoffs will primarily affect roles in machine shops, product design engineering, and hardware engineering. In February, Apple internally announced the cancellation of Project Titan, a long-standing effort to build an electric vehicle, which came as a shock to the nearly 2,000 employees working on it.
Rumors about Apple’s autonomous electric taxi project have circulated for years. In 2017, CEO Tim Cook confirmed the company was developing self-driving systems for potential applications in the automotive industry. However, top executives decided to abandon the project this year after it reached a critical juncture.
Apple spent billions on the electric car project and had been a notable exception among tech companies that slashed workforces during the pandemic. Some workers will reportedly be reassigned to focus on Apple’s generative artificial intelligence division, while others face layoffs.
The Biden Justice Department has taken aim at Apple in recent months over antitrust concerns, but consumer sentiment towards the brand remains strong.
