Apple's San Diego AI team faces relocation or termination

Bloomberg shares that Apple is disbanding a 121-person team linked to artificial intelligence operations in San Diego, putting numerous employees at risk of job loss, as reported by sources familiar with the situation.

The team, named Data Operations Annotations, was informed that it would need to relocate to Austin to merge with the Texas segment of the same team. Employees have until the end of February to decide if they will move. If they choose not to, termination is scheduled for April 26.

The group, with offices in various countries, enhances Siri's functionality by reviewing voice service queries. The closure of the San Diego team was announced by Christine DeFilippo, a top deputy to Apple's AI chief, John Giannandrea.

Apple confirmed the relocation plan, stating that “everyone currently employed will have the opportunity to continue their role with Apple in Austin.” The company also emphasizes its commitment to San Diego and its continued expansion there.

The move surprised the San Diego staff, who were expecting a relocation within the city but were now instructed to move to Texas. Most affected workers reportedly are unwilling to relocate to Austin.

Apple has stated that employees willing to relocate to Austin by the end of June will keep their roles, with the company providing a $7,000 relocation stipend. For those deciding to leave Apple, their positions will be eliminated, and they will receive four weeks of severance, along with an additional week for each year worked. Additionally, departing employees will be provided with six months of health insurance.

Losing up to 121 employees is notable for Apple, as the company managed to stay clear of the widespread layoffs in the big tech sector in 2023. Apple avoided being part of the trend, partly because it did not engage in excessive hiring during the COVID-19 pandemic.

Meanwhile, significant layoffs hit other major companies like X (previously Twitter), Amazon, Google, Microsoft, and Meta, impacting over 50,000 employees collectively. Further contributing to this pattern, Qualcomm recently announced intentions to cut 1,258 positions across its San Diego and Santa Clara offices.