Apple CEO Tim Cook is facing mounting pressure as the company announces its first round of layoffs in the aftermath of the Covid-19 pandemic. This move comes in the wake of the abandoned Apple Car project and declining iPhone sales, particularly in the crucial Chinese market.
The layoffs, affecting 614 employees across multiple facilities near Cupertino, are linked to the closure of Apple’s Special Projects Group, which worked on ambitious initiatives like an autonomous electric car. Additionally, the company recently scrapped plans for advanced Apple Watch screens due to cost and complexity issues.
Despite the relatively small number of job cuts compared to its total workforce, Apple’s move marks a significant departure as the tech giant had previously avoided layoffs when other industry players were downsizing. The challenges extend to China, where iPhone sales have dropped by 24% in the early part of the year, amid growing competition and geopolitical tensions.
In response to these developments, Tim Cook has embarked on a charm offensive in Shanghai following an antitrust lawsuit in the U.S. alleging market monopolization. The company is set to unveil its artificial intelligence strategy, anticipated to drive revenue past $100 billion in 2025, with emerging markets offsetting declines in China.
Additionally, Cook recently sold a substantial amount of Apple stock, highlighting a period of uncertainty for the company as it navigates challenges on multiple fronts. Despite these obstacles, analysts remain optimistic about Apple’s future prospects, especially as new market strategies come into play and technological innovations unfold.
