Apple axes electric car dream

Apple, the technology giant, has announced that it will lay off 614 of its employees after it called an end to its electric car project.

In February 2024, Apple made the difficult decision that it would halt its plans to develop a fully autonomous electric vehicle.

This decision has led to the company’s first significant job cuts since the pandemic, impacting 614 of its US employees. The layoffs are concentrated in Santa Ana, California, across eight different facilities, as stated in a worker adjustment and retraining notification (WARN) by the tech behemoth.

Impact across eight facilities

The WARN notice detailed that those impacted were informed of the cuts on March 28, with the changes set to take place on May 27.

While the notice didn’t pinpoint the exact roles affected, reports suggest that the layoffs include positions like machine shop managers, hardware engineers, and product design engineers. It’s noteworthy that none of the cuts are happening at Apple’s main campus in Cupertino, but rather at smaller, likely more secretive locations.

Shift to artificial intelligence

After a decade of secretive development on the electric car project, Apple has decided to pivot its focus towards artificial intelligence (AI). CEO Tim Cook has hinted at the launch of generative AI features later this year, marking a significant shift in the company’s strategic direction.

This move reflects Apple’s adaptation to the evolving tech landscape, where AI is increasingly becoming an important element.

The closing down of Apple’s electric vehicle project has resulted in the company’s first significant job reduction since the pandemic, affecting 614 employees in Santa Ana, California.

As the company turns its attention towards AI, the industry watches closely to see what changes this will bring, with new AI features expected later in the year.