(DailyAnswer.org) – Apple has culled over 600 staff members in California, indicating a shift in the company’s priorities as it deals with a number of challenges under CEO Tim Cook’s leadership.
Several of the layoffs related to the company’s unsuccessful electric vehicle (EV) project, which was canceled in February. Despite having a track record of infrequent layoffs and relative stability, the company opted to cut the jobs that affected employees working primarily on development projects and expensive research. Apple scrapped its electric vehicle project after it cost the company $1 billion a year since 2014. The layoffs also impacted an in-house initiative to use microLED technology to make brighter smartwatch screens.
Apple’s overall workforce amounts to approximately 161,000 employees. The move to streamline research and development efforts comes as Apple faces mounting challenges that threaten its dominance in the tech industry. Slowing sales of its iPhone, especially in China, is one of these issues the company faces. Sales of iPhones in China declined by 24% in the first half of 2024 amid rising competition from rivals such as Huawei, whose 5G-ready Mate 60 Pro is becoming increasingly popular in the Chinese market.
Apple has also been hit with a lawsuit from the Department of Justice, which claims it has monopolized the smartphone market. The company also faced a $1 billion U.K. lawsuit in 2023 over fees on its app store and lawsuits in both the U.K. and the U.S. accusing the company of deliberately slowing down its smartphones, which have already resulted in payouts. In the European Union, regulators are pressuring Apple to comply with the Digital Markets Act, which strives to open up the App Store to competition.
The company has not commented on the cancellation of its electric vehicle project. Apple has recently ventured into the uncharted territory of mixed reality, having released its Vision Pro headset in February. The headset costs $3,500, and according to Cook, users have access to an “infinite canvas.” Prominent analysts have noted the lack of apps driving sales of the device, and consumer interest in the Vision Pro has been slow to get off the ground.
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