Apple lays off over 600 employees amid closure of car project

Apple Inc. has made the decision to lay off over 600 employees in California, ending its car and smartwatch display projects, as per the California Employment Development Department filings.

The company filed eight separate reports with the state under the Worker Adjustment and Retraining Notification (WARN) program, cited by Bloomberg. It is required for each California address with employees affected by the layoffs. 87 of these employees were from a secret facility for next-generation screen development, while the remainder were part of the car project.

The initiatives were wound down at the end of February due to executive indecision, cost concerns, engineering, supplier and cost challenges. The filings indicate that 371 employees were let go from the main car-related office in Santa Clara, California, with dozens more affected at multiple satellite offices. Some members of the Apple car group were relocated to other teams, such as artificial intelligence or personal robotics.

The WARN notices do not disclose the full extent of the job cuts as many engineers on both projects were based in other areas, including Arizona.

Apple Car Project

The concept of the Apple Car, even though it didn’t materialize, was quite revolutionary. The envisioned design around 2020 was a sleek, futuristic van, unlike any existing vehicle, and it was intended to be fully autonomous.

The interior was planned to be minimalist yet advanced, featuring luxurious jet-like seats and a unique air system. Apple also considered installing a large TV and iPad-like screens for entertainment and controls.

The design of Apple’s car evolved significantly over time. It once drew inspiration from vintage Volkswagen buses, but with a modern twist. The final design, which was highly appreciated by Apple’s top executives, was innovative and exciting.

However, when Apple concluded that the car couldn’t be entirely self-driving, they reintroduced a steering wheel and pedals, altering the design once again. Shortly after, the entire car project was shelved.