Apple recently laid off more than 600 workers in California, according to filings with the state’s Employment Development Department. The layoffs come in the wake of reports that the company had scrapped its self-driving car project and in-house efforts to build Apple Watch displays. The employees were permanently laid off from eight different offices in Santa Clara, with most of the cuts being linked to the development of an advanced self-driving electric car. This marks the first major set of layoffs for Apple since the end of the pandemic, as the company managed to avoid large-scale firings that affected other tech giants last year.
One of the facilities named in the filings corresponds with the address of LuxVue Technology, a microLED display tech maker that Apple acquired in 2014. Bloomberg reported that Apple canceled plans to develop its own displays for the Apple Watch, leading to layoffs as the project proved to be too costly and complex. The layoffs also cover machine shop managers, hardware engineers, and product design engineers linked to the secret project involving the self-driving car. These layoffs are significant as they mark a shift in focus for Apple, which has reportedly shifted its efforts from building a self-driving car to working on artificial intelligence, according to recent reports.
Last year, Apple’s CEO Tim Cook stated in an interview with CNBC that mass layoffs were a “last resort” for the company, and it was not something they were considering at that time. However, the tech industry as a whole saw a total of 57,785 staff layoffs in 2024, affecting workers at 235 tech companies. Apple’s recent layoffs add to this large number, making them a noteworthy addition to the list of companies making cuts. The company’s decision to lay off employees in the wake of canceling major projects reflects a larger trend in the tech industry, where companies are reevaluating their priorities and shifting resources to focus on new areas of innovation.
Apple’s internal effort to develop a self-driving car, known as Project Titan, was one of the company’s most ambitious projects. Led by long-time hardware engineer Bob Mansfield and former Tesla executive Doug Field, the project faced challenges and changes throughout its development. Reports suggest that the project was initially aiming for a fully autonomous vehicle with no pedals or steering wheel, but was later scaled back to a “Level 2+” self-driving system. This shift in focus, along with the company’s struggles with antitrust investigations and sales challenges in China, has impacted Apple’s stock performance, with shares falling more than 9% since the start of the year.
Overall, the layoffs at Apple signal a strategic shift in the company’s priorities, as it moves away from its self-driving car project and focuses on artificial intelligence. The decision to cut employees from various offices in California reflects the company’s efforts to streamline operations and allocate resources more efficiently. As Apple faces challenges in the market and regulatory scrutiny, it is pivoting towards new areas of innovation to stay competitive in the rapidly evolving tech industry. The impact of these changes on the company’s future direction remains to be seen, but Apple’s ability to adapt and evolve will be crucial in maintaining its position as a leader in the tech sector.