
Apple recently terminated over 600 employees as a result of discontinuing its electric car and smartwatch display projects. These projects were phased out at the end of February. Previously, these initiatives were considered ambitious attempts by Apple to enhance existing technologies or enter new markets.
Employee Details and Compliance with WARN Program
Employee details have come to light through documents submitted to the California Employment Development Department. Apple submitted eight separate reports as part of its compliance with the Worker Adjustment and Retraining Notification (WARN) program, which requires employers to provide advance notice of layoffs.
Reasons for Discontinuation
The decision to discontinue the car project was due to executive indecision about its direction and concerns over costs. Similarly, the smartwatch display project faced engineering, supplier, and cost challenges that led to its termination. As a result, 371 employees from Apple’s primary car-related office in Santa Clara were laid off, along with several others from various satellite offices.
Affected Employees and Reassignments
Out of the total layoffs, 87 employees were associated with a location linked to a covert Apple facility for next-generation screen development. The remaining affected employees were from locations tied to the car project. Some members of the Apple car team were reassigned to other areas within the company, such as artificial intelligence or personal robotics. However, these figures only represent job losses in California, leaving the possibility of additional layoffs in other regions.
Apple’s Shift Towards Generative AI
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 the responsible use of AI technology. This shift is further evident in the various job postings by Apple for generative AI roles. Apple’s acquisition of DarwinAI, an artificial intelligence start-up, also emphasizes its move towards AI.