In a significant move, Apple Inc. has announced the closure of its San Diego-based artificial intelligence team, affecting 121 employees. This decision aligns with Apple’s strategy to consolidate its AI operations by merging the San Diego team, known as the Data Operations Annotations team, with its larger counterpart in Austin, Texas. This team, initially comprising contractors who focused on analyzing Siri queries, evolved into a full-fledged AI unit emphasizing the enhancement of Siri’s capabilities in multiple languages, including Hebrew, English, Spanish dialects, Portuguese, Arabic, and French.
A Shift in Strategy
The announcement, made by a top deputy to Apple’s AI chief John Giannandrea, marks a departure from Apple’s trend of steering clear of significant layoffs, especially during the pandemic period. The move is seen as a strategic consolidation, aiming to bring together the US-based Data Operations Annotations teams at the company’s Austin campus, where the majority of the team is already based.
Impact on Employees
The transition presents a challenging scenario for the San Diego team members. Employees have been given the option to relocate to Austin, with a stipulated decision deadline. Those opting not to move will face termination by April 26. Apple has offered a $7,000 relocation stipend to those willing to move by the end of June, alongside severance pay based on their length of service and six months of health insurance.
However, this decision has been met with reluctance by a significant number of employees, partly due to concerns about their eligibility for roles in Austin, given their non-engineering backgrounds. The company has informed employees about the possibility of applying for other positions within Apple, but the specifics regarding future employment opportunities remain unclear.
Broader Industry Trends
Apple’s move to consolidate AI operations is reflective of a broader trend in the tech industry, where companies are increasingly turning to AI-driven solutions, often leading to organizational restructuring and changes in workforce requirements. This trend is evidenced by similar moves from other tech giants. For example, Paytm’s parent company, One97 Communications, recently laid off over 1,000 employees, with roles being replaced by AI-led automation.
