Apple Killed Its Car, Display Projects, And Then It Culled 600 Jobs: Report

Apple Inc. AAPL has reportedly concluded the third notable round of layoffs this year, following the downsizing of its Siri annotation team in San Diego, which impacted 121 people in January.

What happened: According to state filings spotted by Bloomberg‘s Mark Gurman, Apple has laid off more than 600 employees in California in a major restructuring move. The job cuts come as the tech giant halted its ambitious self-driving car initiative and next-generation display program.

The Cupertino-based company submitted eight separate Worker Adjustment and Retraining Notification (WARN) reports to the California Employment Development Department, detailing the layoffs across various locations in the state.

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At least 87 employees working at a secretive facility dedicated to developing advanced screen technologies were impacted. Meanwhile, most cuts, totaling 371 workers, occurred at Apple’s main car project office in Santa Clara.

The layoffs mark the end of two high-profile “moonshot” efforts that aimed to push Apple’s technological boundaries. The self-driving car project, which had been shrouded in secrecy, was reportedly scrapped due to executive indecision and escalating costs.

Similarly, the display program faced engineering challenges, supply chain issues, and cost overruns, ultimately leading to its termination.

While some members of the disbanded car team were reassigned to other divisions like artificial intelligence and personal robotics, the majority faced job losses.

In line with its usual reticence, Apple has not yet commented on the specific number of employees impacted by the restructuring. However, the WARN notices provide a glimpse into the scale of the cuts, which likely extend beyond California.

The filings are a regulatory requirement for companies planning mass layoffs, ensuring affected employees receive advance notice and access to resources.

Why it matters: As Apple doubles down on its core product lines and services, the decision to axe these ambitious side projects underscores its focus on prioritizing resources and streamlining operations. The layoffs are expected to generate significant cost savings. Still, they also raise questions about Apple’s ability to nurture and execute long-term, cutting-edge initiatives beyond its established domains.

Apple Price Action: Tesla ended Thursday’s session up 0.24% at $169.22, according to Benzinga Pro data. The stock is down nearly 9.06% for the year-to-date.

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