The jobs of 2000 Apple employees hang in the balance.
Apple's bombshell move to pull the plug on its EV project, codenamed Titan, comes after a staggered climb-down from earlier ambitious plans. The company previously limited the planned car's autonomous features and downgraded the EV to Level 2+ autonomy, Bloomberg reported.
It has been reported that those on the 2000-strong EV project may have the chance to apply for jobs in other departments, including AI. Those who move there will work on the company's generative AI projects.
The pink slip tsunami threatened by Apple's decision echoes other culls across the global tech industry. In January Google's chief executive warned that heads would continue to roll into 2024.
Musk tokes up the news as China reacts
The news has generated a mixed response from different industry players. The range of reactions spans approval, derision, and nostalgia.
CEO of China's Li Auto Li Xiang said Apple made the right decision. His assessment was based on the news that Apple was shifting its focus to AI, he added, per Carscoops.
Elon Musk's response was more laconic. Reposting the news on his X account, the Tesla chief commented with a salute and cigarette emoji.
Joe Xia, CEO of China's Jiyue Automotive Technology, was positive about Apple's move into AI. However, he questioned whether the decision would have been made if Steve Jobs were still in charge, Carscoops reported.
Trouble in the EV market
In recent months, EV firms have faced challenges. The initial surge of early adopters has diminished, resulting in a slowdown in sales growth despite the persistently high prices of vehicles.
Rivian, an EV manufacturer, reported a revenue loss of US$5.4 billion last week. The loss comes despite the company doubling its EV deliveries in 2023 compared to the previous year, as indicated in its latest fourth-quarter earnings report, Business Insider reported.
Dan Ives, an analyst at Wedbush, said 'On one hand this is a modest disappointment. The view with roughly 2,000 employees on this initiative [was] that an Apple Car was still on the medium-term horizon,' he added, per the U.K.'s Daily Mail.
