Apple Inc. is set to lay off more than 600 workers in Silicon Valley, marking the first significant job cuts since the onset of the pandemic. The decision comes shortly after the tech giant halted its secretive self-driving electric vehicle (EV) project.
According to a filing with the state of California, 614 employees received notices on March 28, informing them of their impending job loss effective May 27. The layoffs, reported initially by the San Francisco Chronicle, indicate a shift in Apple’s operational strategy.
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In February, Apple reportedly abandoned its long-term plans to develop an autonomous electric vehicle. Bloomberg News disclosed that some project employees would be reassigned to other divisions, while others would face layoffs.
Although the state filing did not specify the terminated project, the layoffs will primarily impact workers at eight satellite offices in Santa Clara, California, sparing those at Apple’s headquarters in Cupertino.
Apple has refrained from immediate comment on the matter.
Last May, amidst widespread layoffs in the tech sector, Apple CEO Tim Cook emphasized that job cuts would be a “last resort.” However, he acknowledged efforts to contain costs and slow down hiring.
Despite economic uncertainties during the pandemic, Apple maintained a conservative hiring pace, which largely shielded the company from significant layoffs.
The recent layoffs come as Apple posted an end to a four-quarter revenue decline in the December-ending quarter but warned of potential setbacks in the March-ending quarter.
In parallel developments, Amazon slashed hundreds of jobs in its AWS cloud-computing business on Wednesday.
Apple’s stock has experienced a 12% decline year-to-date, with a modest 2.5% increase over the past year, compared to the S&P 500’s gains of 8% in 2024 and 25% over the past 12 months.
