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Apple said to cut some 200 jobs from Beats as acquisition closing date looms

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As Apple takes control of Beats Music and Beats Electronics, the Cupertino, Calif. company is said to be paring some 200 jobs from the music software and hardware firm's roster.

According to sources speaking with the New York Post, Apple is culling about 200 Beats employees as part of its $3 billion acquisition, which is set to close on Aug. 1.

"Last week everyone was given an offer from Apple. Some were transitional offers with a set end date," one source said.

As noted by the publication, the 200 employees represent about 40 percent of Beats' global workforce, a substantial downsizing that will likely be filled internally once Apple is in full control of the company.

A separate report from Bloomberg corroborates the claims, saying expected cuts are to come from human resources, finance and other departments that overlap with existing roles at Apple. The publication goes on to say Apple plans to fire the workers after the acquisition is firmly in place.

News of the layoffs was first noted by 9to5Mac.

Apple's Beats buy has been overshadowed as of late by rumors of an impending iPhone refresh. Most recently, the European Commission gave Apple the green light to go forward with the acquisition, noting the two companies' combined market share in the headphone business does not come close to that of competing companies.

Last week, audio giant Bose sued Beats' hardware arm, claiming infringement of patented noise canceling technology. Apple will inherit the lawsuit when it takes over operational control in August.



40 Comments

solipsismx 13 Years · 19562 comments

I would have much rather read a story where Apple gives 200 Beats employees in obsolete positions a chance to least get hired on at Apple, even if they are support roles and have to move to Cupertino, than simply being shown the door. That reminds me of slick businessman Steve Castle who would dismantle companies like this before he was diagnosed with boneitis and had to be cryogenically frozen to wait for a cure. The only thing That Guy ever regretted was having boneitis.

realistic 14 Years · 1154 comments

Quote:
Originally Posted by SolipsismX 

I would have much rather read a story where Apple gives 200 Beats employees in obsolete positions a chance to least get hired on at Apple, even if they are support roles and have to move to Cupertino, than simply being shown the door.

That reminds me of slick businessman Steve Castle who would dismantle companies like this before he was diagnosed with boneitis and had to be cryogenically frozen to wait for a cure. The only thing That Guy ever regretted was having boneitis.

I think that Apple is smart enough to offer positions to the Beats employees that could fit well into the needs of the overall company. As with any merger some positions become redundant and it makes no sense, for example, to put a career finance person into a support position as they will leave as soon as they can find another position in finance.

solipsismx 13 Years · 19562 comments

[quote name="Realistic" url="/t/181637/apple-said-to-cut-some-200-jobs-from-beats-as-acquisition-closing-date-looms#post_2571750"]I think that Apple is smart enough to offer positions to the Beats employees that could fit well into the needs of the overall company. As with any merger some positions become redundant and it makes no sense, for example, to put a career finance person into a support position as they will leave as soon as they can find another position in finance.[/quote] I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push [I]anyone[/I] out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brandname.

The_Martini_Cat 12 Years · 485 comments

If the acquisition does not go through, does this mean they have hired all the Beats people that constitute Beats value to Apple? Just wondering!!!