Apple eliminates jobs following Beats acquisition

Apple eliminates jobs following Beats acquisition

Summary: As Apple's acquisition of Beats Electronics and Beats Music comes close to completion, hundreds of employees may find their positions redundant and their pink slips issued.

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TOPICS: Apple
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Credit: Apple

As the acquisition of Beats Electronics and Beats Music looms closer, Apple has begun transitioning some employees to its own workforce -- but others will feel the sting of redundancy.

The Cupertino and Santa Monica, California-based companies have begun shifting Beats employees to Apple, as reported by Bloomberg. A source with knowledge of the restructuring said approximately 200 workers at Beats Electronics will be axed.

According to 9to5Mac, Apple executives visited the Beats headquarters this week, and have notified some members that they are not to be included in the transition. The majority of Beats staff in creative roles will be offered positions at Apple, but cuts are expected to hit human resources, finance and roles where there is overlap between the two companies.

Some employees are believed to be offered different positions at Cupertino, while others will be guaranteed work until January 2015. 

The acquisition of Beats was announced in May. The deal, signed for $3 billion, is Apple's largest acquisition in years, and gives the tech giant the opportunity to explore rapidly growing music subscription services -- as well as potentially create a line of premium headphones. The deal was recently approved by the European Commission, and Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as mid-level executives.

The Apple-Beats deal is expected to finally close in this quarter, ending mid-September.

The iPad and iPhone maker accounted for 41,300 employees as of the end of June.

Topic: Apple

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8 comments
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  • How dare they

    How dare they cut jobs and improve efficiency like Microsoft did.
    Sean Foley
    • I do not understand this comment

      are you saying there was widespread criticism of Microsoft for doing so?

      I'd like to know which business mag criticized that, or which of the major stock exchanges saw Microsoft stock valuations drop, because I was under the impression that was actually rather well received.
      Mac_PC_FenceSitter
      • Agreed, the comment doesn't make much sense

        Acquisitions are typically followed by layoffs.
        Emacho
      • It is obviously tongue-in-cheek

        because of the rabid anti-Apple people will ignore the fact that in ALL industries and companies acquisitions are typically followed by layoffs. Microsoft does the same, but is not lambasted as is Apple.
        romad1
        • I think

          You have your comment backwards. People will lambast Microsoft over Apple.
          schultzycom
      • I think he means comments from the diehard ABMer's here at this site

        where layoffs of redundant or excess overhead at MS or Nokia was met with criticism of "how evil MS is for doing this, destroying honest people's lives"
        William.Farrel
    • You are a sad...

      strange little man.
      msalzberg
  • Probably not the last

    I'm sure this is just the first wave of cuts. There are usually at least a couple of rounds of layoffs. And this excludes at the manufacturing level. But a lot will depend on exactly what Apple does with Beats. It could [but unlikely] add Beat ear buds into the next iPhone model [as those included are really crappy] or just chop part of the line altogether.
    Gisabun