HomeMarket News The Bitter Apple: Understanding the Impact of the...

The Bitter Apple: Understanding the Impact of the Latest AAPL Layoffs

Actionable Trade Ideas

always free

Apple Layoffs - Apple Layoffs 2024: What to Know About the Latest AAPL Job Cuts

Source: sylv1rob1 / Shutterstock.com

After scrapping its Apple Car project, Apple (NASDAQ:AAPL) faced a tough decision and laid off more than 600 employees. This action marked Apple’s most massive downsizing since the height of the pandemic, causing a stir in the market concerning both Apple and AAPL stock.

Insights into the Recent Apple Layoffs

Documentation submitted to California regulators indicated that Apple’s layoffs would commence on May 27.

Although specific details about the affected employees were not disclosed, the timing of the layoff announcement right after Apple’s discontinuation of the autonomous electric vehicle (EV) project led to speculation that most laid-off workers were associated with the now-defunct initiative.

Interestingly, some employees formerly engaged in the EV project have transitioned to contributing to Apple’s advancements in AI systems.

Tech Giants and Legal Tussles

Reports from Bloomberg on April 3 suggested that Apple might venture into developing β€œhome robotics” products, potentially including a household robot or a stationary home assistant.

Conversely, on March 21, the Department of Justice filed a lawsuit against Apple, accusing the company of establishing an β€œillegal monopoly in the smartphone market.” The regulators’ claim is centered on Apple preventing competition and subsequently leveraging its market dominance to inflate product prices.

Despite these legal challenges, Evercore, an investment bank, recently reported that Apple’s revenue from the App Store surged by an impressive 13% last month compared to March 2023.

Prior to the layoff news, AAPL stock had slumped by 1.5% over the previous five days and was down by 12.3% year-to-date in 2024.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Larry Ramer has researched and authored articles on U.S. stocks for 15 years, contributing to publications such as The Fly and Globes, Israel’s premier business newspaper. His columns first appeared on InvestorPlace in 2015, with his notably successful contrarian picks including SMCI, INTC, and MGM. Connect with him on Stocktwits at @larryramer.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.