Jean MartinApple has announced layoffs of more than 600 employees after discontinuing its decade-long efforts to develop an electric car. This decision marks a significant shift in focus for the tech giant, with repercussions felt at its Silicon Valley offices.
Job Reductions and Project Closure:
The redundancies, the first since the pandemic, primarily occurred at Apple’s Silicon Valley offices, where parts of its electric car project were housed.
Additionally, a team working on new screen technology is being shut down. The layoffs were disclosed in California state filings.
Abandoning Project Titan:
Apple’s electric car project, dubbed Project Titan, was launched in secret in 2014 but has faced numerous challenges, including restructuring and leadership changes. Despite operating a test fleet of self-driving cars in California, Apple ultimately decided to cancel its efforts to develop a self-driving car.
While Apple initially aimed to build a fully autonomous vehicle, it has redirected its efforts following the decision to abandon the electric car project.
The company is now focusing on embedding more powerful artificial intelligence technology in its gadgets and is reportedly planning a push into home robotics.
Industry Challenges and Market Trends:
The decision to halt the electric vehicle project comes amidst waning global demand for battery-powered cars, which remain more expensive than petrol equivalents at the budget end of the market. High inflation has also dampened overall demand for new vehicles.
Apple’s job cuts include hundreds of roles in Santa Clara, California, and follow earlier reductions in San Diego.
Despite these changes, Apple continues to have a presence in millions of cars through its CarPlay software and remains focused on innovation and technology integration in various sectors.
