Apple AI Team In San Diego To Be Dissolved, Employees Face Termination Or Relocation: Report
Portfolio Pulse from Benzinga Neuro
Apple Inc. (NASDAQ:AAPL) is reportedly disbanding its 121-member AI team in San Diego, offering employees the choice to relocate to Austin or face termination by April 26. The Data Operations Annotations team, responsible for improving Siri, was informed of the decision, which comes ahead of the launch of Apple's Vision Pro mixed-reality headset. This move is seen as a cost-saving measure or strategic shift in AI operations, amidst Apple avoiding significant layoffs despite missing earnings expectations.
January 15, 2024 | 11:39 am
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Apple's decision to disband its San Diego AI team may be seen as a cost-saving measure or a strategic realignment, which could be perceived positively by investors if it leads to greater efficiency. However, the potential negative sentiment from affected employees and the public could create short-term pressure on the stock.
The news of Apple disbanding its AI team in San Diego could have a neutral to slightly negative impact on AAPL stock in the short term. While the move might improve operational efficiency and reduce costs, which is generally positive for the stock, it could also lead to negative publicity due to the potential job losses. The timing of this news, coinciding with the launch of a new product, could mitigate some of the negative impact as investor focus may be more on the product launch than on the team's dissolution.
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