One of the most valuable companies on Earth, tech giant Apple, has laid off more than 600 employees in California, signaling a shift in the company’s priorities as it faces a multitude of challenges under the leadership of CEO Tim Cook. Many of the layoffs were related to the company’s failed electric vehicle project, which was shut down in February.
Business Insider reports that Apple, known for its stability and infrequent layoffs, has taken the surprising step of cutting over 600 jobs in California, according to filings with the California Employment Development Department. The affected employees were primarily involved in expensive research and development projects, such as the secretive electric vehicle initiative, which was scrapped in February after costing the company $1 billion annually since 2014. Another project impacted by the layoffs was an in-house endeavor to create brighter smartwatch screens using microLED technology.
These layoffs, while relatively small compared to Apple’s total workforce of approximately 161,000, are indicative of a more focused approach being adopted by CEO Tim Cook. The decision to streamline R&D efforts comes as Apple faces numerous challenges that threaten its dominance in the tech industry.
One of the most pressing issues is the slowing sales of the iPhone, particularly in China, which is Apple’s most important international market. According to data from Counterpoint Research, iPhone sales in China fell by 24 percent in the first six weeks of 2024, with overall shipments in February being 33 percent lower than the same month in the previous year. This decline can be attributed to increased competition from rivals like Huawei, whose 5G-enabled Mate 60 Pro has been gaining favor among Chinese consumers.
In addition to product-related challenges, Apple is also grappling with legal battles on multiple fronts. The DOJ recently sued the company over claims of monopolizing the smartphone market, while in the European Union, Apple faces pressure from regulators to comply with the new Digital Markets Act, which aims to open up its App Store to more competition.
As Apple navigates these various obstacles, the company has also ventured into the unproven sector of mixed reality with the release of its $3,500 Vision Pro headset in February. Despite CEO Tim Cook’s optimistic vision of the device offering an “infinite canvas” for users, consumer interest has been slow to materialize, with influential analysts pointing out the lack of compelling apps to drive sales.
Read more at Business Insider here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.