Apple gives employees a harsh ultimatum that puts their jobs at risk
Published 11:02 am Tuesday, January 16, 2024
- Tim Cook, chief executive officer of Apple Inc., at the company's Fifth Avenue store in New York, US, on Friday, Sept. 22, 2023.
Apple is giving a group of its employees in San Diego two choices: move to Austin, Texas, or get the boot.
The tech giant is reportedly giving the 121 employees on its Data Operations Annotations team, which works on Siri, until the end of February to make a decision on whether or not they want to move to Austin by the end of June to merge with that same team in Texas. If an employee chooses not to relocate, the company will terminate their position on April 26, according to a recent report from Bloomberg.
Related: Apple could also lose big if Google loses DOJ’s antitrust case
Apple also allegedly told the employees that they have the option to apply for other jobs within the company. The tech giant confirmed with Bloomberg that the company is offering employees $7,000 stipends to relocate, and those who are terminated will get four weeks of severance, with an additional week for each year they worked, as well as six months of health insurance.
Apple did not immediately respond to TheStreet’s request for comment.
Apple has been expanding its footprint in Austin in recent years. The tech company broke ground on its second campus in Austin in 2019 saying that its expansion in that area is a part of the company’s “investment in manufacturing, engineering and other jobs,” according to a 2019 press release.
“With the construction of our new campus in Austin now underway, Apple is deepening our close bond with the city and the talented and diverse workforce that calls it home,” said Apple in the press release.
The billion-dollar project will provide 419,441 square feet of office space when it reportedly will be completed in 2025.
Apple has been avoiding laying off its employees at a time where layoffs at large companies such as Amazon, Microsoft and Google are on the rise due to a tough economic climate. In March 2023, Apple CEO Tim Cook told CNBC in an interview that layoffs are not on the horizon at the company.
“I view that as a last resort and, so, mass layoffs is not something that we’re talking about at this moment,” said Cook.
So far in 2024, 48 tech companies have conducted layoffs, and 7,528 tech employees have been let go as a result in just 2 ½ weeks, according to data from Layoffs.fyi.
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