Apple discontinues development of self-driving electric automobile and initiates staff layoffs

Apple has officially terminated its clandestine autonomous electric car initiative, Project Titan, with executives announcing the decision in a brief meeting on Tuesday. The move involves substantial layoffs, potentially affecting hundreds of employees. According to sources, some team members will transition to Apple’s generative AI projects, while others face a 90-day window to secure alternative roles within the company or face termination. Approximately 1,400 employees were reportedly engaged in the now-discontinued car project.

The cancellation arrives amid a broader industry trend where major automakers are reassessing their commitments to electric vehicles, and as scrutiny intensifies on autonomous vehicle ventures. Apple’s foray into the automotive sector was initially perceived as a strategic move to diversify revenue streams, countering challenges such as plateauing hardware sales and regulatory pressures on its services business.

Known internally as “Project Titan,” Apple commenced work on the car project in 2014, peaking at around 5,000 dedicated personnel. However, the company underwent multiple strategic shifts over the past decade, oscillating between ambitions to produce an all-electric rival to Tesla and a fully autonomous vehicle akin to Waymo’s offerings. Earlier reports in January indicated pressure from Apple’s top executives and board for the project to expedite market entry.

During Tuesday’s abrupt 12-minute meeting led by Apple’s COO Jeff Williams and Titan VP Kevin Lynch, employees were informed of the decision without an opportunity for questions. Despite the sudden announcement, insiders noted the decision was not unexpected, given the project’s history of evolving priorities.

Project Titan experienced a revolving door of high-profile automotive executives, including former Tesla executive Doug Field and hires from Lamborghini and Ford. In 2021, Ulrich Kranz, a former BMW executive, joined Apple from EV startup Canoo. Apple had explored partnerships with various companies, including Canoo, Hyundai, and Kia, as part of its search for manufacturing capabilities, intellectual property, and talent. The termination of Project Titan reflects Apple’s ongoing strategic adjustments in a rapidly evolving automotive landscape.