Apple Slashes More Than 600 Jobs in California: Watch This Key Stock Price Level
Introduction
Apple (AAPL) shares saw a slight increase in premarket trading on Friday morning following the revelation that the tech giant had cut 614 jobs in California. This marks Apple’s first major headcount reduction since the pandemic began, as reported in state regulatory filings late Thursday. The job cuts impacted various departments within Apple, including its main car-related office, next-generation screen development facility, and smaller satellite offices.
The Job Cuts
According to filings with the California Employment Development Department, 614 employees were laid off from Apple’s Santa Clara office and other locations. The affected positions included machine shop managers, hardware engineers, and product design engineers. The job cuts were announced on March 28, with the changes taking effect on May 27.
These reductions come after Apple’s decision to cancel its autonomous electric car project earlier this year due to internal disagreements and rising costs. Employees working on the project were reassigned to the company’s artificial intelligence division. Additionally, Apple recently discontinued its efforts to develop in-house displays featuring microLED technology due to various challenges.
Industry Trends
Apple’s job cuts are part of a larger trend among mega-cap technology companies that have downsized their global workforce this year. This shift is attributed to post-pandemic staffing adjustments and uncertainty surrounding the macroeconomic landscape. The tech industry as a whole has been reevaluating its workforce needs in light of changing market conditions.
Stock Performance
The Apple share price has shown signs of a potential double top pattern, with two distinct peaks between July and December of last year. Additionally, the 50-day moving average crossed below the 200-day moving average recently, forming a death cross—a bearish signal indicating a possible downtrend.
Investors should pay close attention to the neckline of the double top pattern, which is around $166.50. A breakdown below this level could confirm the pattern and lead to further declines in the stock price. As of premarket trading on Friday, Apple shares were up 0.3% at $169.27.
Conclusion
Apple’s decision to cut more than 600 jobs in California reflects the company’s ongoing efforts to streamline operations and refocus its resources on key strategic areas. The job cuts come at a time of transition for Apple, as it adjusts its product development priorities and navigates changing market dynamics. Investors will be closely watching the stock price in the coming days to see how the market responds to these developments.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. The author does not own any securities mentioned in this article.
Source: Investopedia
