Apple recently announced layoffs affecting more than 700 employees, according to various reports circulating online. These job cuts followed the cancellation of two major projects: the self-driving car initiative, known as Project Titan, and the development of in-house MicroLED displays.
In California, there’s a mandatory process where companies must file notices under the Worker Adjustment and Retraining Notification Act. Apple complied with this requirement, shedding light on which teams were hit hardest by the layoffs.
The layoffs come after the Project Titan, Apple’s secretive self-driving car endeavor, also experienced significant cutbacks, according to reports. WARN notices indicated layoffs from offices previously associated with car development and testing. Although Apple had been working on an electric car since 2014, the project was ultimately shelved last month. It was reported that Apple chose to refocus on AI, and employees who couldn’t transition to other teams would be asked to leave the company.
Tech Lay-offs continue after pandemic
During the challenging times of the Covid-19 pandemic, tech companies ramped up their hiring efforts to keep up with demand. Microsoft, for example, brought onboard nearly 58,000 new employees between 2020 and 2022. Facebook also experienced significant growth in its workforce during 2020 and 2021.
Alphabet, the parent company of Google, consistently expanded its employee base by 10% annually since 2013. Amazon, driven by various factors, notably increased its workforce by a staggering 810,000 employees for its warehouses and corporate offices.
In contrast, Apple took a more measured approach to hiring during this period. While the company did add 17,000 employees for its retail and corporate divisions in 2020 and 2021, it was a relatively conservative expansion compared to other tech giants.
This strategic hiring allowed Apple to avoid resorting to layoffs.
Despite this, Apple employees did feel the effects of cost-cutting measures starting in February 2023, according to a Bloomberg report.
Corporate employees saw delays in bonuses, and there was a new requirement to seek approvals from senior vice presidents for additional expenses. Travel budgets were also reduced significantly, requiring strict approval processes. These measures aimed to control costs without resorting to layoffs, reflecting Apple’s commitment to its workforce during challenging times.
Apple’s decison comes after the cancellation of two projects
Apple made the tough decision to pull the plug on two major projects that had been draining resources for quite some time.
One of these projects was Project Titan, the highly secretive initiative focused on developing the Apple Car. According to reports from Bloomberg in February 2024, Jeff Williams, Apple’s chief operating officer, along with Kevin Lynch, who headed the project, held a brief meeting lasting less than 15 minutes. In that meeting, they delivered the news that the project was being scrapped, and the teams would be reassigned to other areas within the company.
With around 2,000 employees working on the project, it was a significant shake-up. Apple did mention to employees that if they couldn’t find a place in other teams, they might face layoffs.
The other project on the chopping block was the development of MicroLED displays for the Apple Watch. Production challenges led Apple to decide to halt this project as well, affecting employees in those teams who were also asked to move on. Overall, close to 700 employees across various teams were reportedly impacted by these decisions.
