Apple closes San Diego AI team, prompts relocation to Austin for 121 employees, raising concerns and potential layoffs amid unexpected changes. (Bloomberg)
Apple is set to disband a 121-member team focused on artificial intelligence operations in San Diego, raising concerns about potential job terminations for the affected employees, according to insiders. The group, recognized as Data Operations Annotations, received notice on Wednesday that they might be required to relocate to Austin and merge with the Texan segment of the same team. Employees were given until the end of February to decide on relocation; failing to do so would lead to terminations on April 26.
Responsible for refining Siri by evaluating voice service queries, the group operates globally with offices in China, India, Ireland, and Spain. The decision to close the San Diego sector was communicated by Christine DeFilippo, a key figure under Apple's AI chief, John Giannandrea. Apple confirmed the relocation move, stating that it aims to consolidate its "Data Operations Annotations teams in the US at our campus in Austin," where a significant portion of the team is already based. Existing employees were assured the opportunity to retain their roles with Apple in Austin.
Despite this move, Apple emphasized its commitment to San Diego, where it has experienced significant growth, continuing to expand its engineering teams. In other countries housing the affected team, Apple generally maintains a single office for all employees. The San Diego staff, operating from a rented office, were previously informed of a planned relocation to a new Apple campus within the city. However, the recent decision redirected them to Texas, surprising many employees.
Reports indicate that a majority of affected workers are reluctant to relocate to Austin, potentially leading to a significant exodus from the company. Employees were informed about the option to apply for alternative positions, but concerns arise, particularly for those without engineering backgrounds, regarding eligibility for available roles.
The San Diego team specialized in enhancing Siri functionality across various languages, including Hebrew, English, and multiple dialects of Spanish, Portuguese, Arabic, and French. The potential outcome of this relocation could see several dozen workers departing from Apple, a company that has managed to avoid widespread layoffs during the pandemic, unlike many of its tech counterparts.
For those willing to relocate to Austin by the end of June, Apple is offering a $7,000 relocation stipend. However, employees choosing to leave will face role eliminations, receiving four weeks of severance pay, along with an additional week for each year of service. They will also benefit from six months of continued health insurance coverage.
This particular team within Apple has a notable history, initially comprising contractors who monitored Siri queries for accuracy. However, this practice, which raised privacy concerns, became optional for customers in 2019. The contractors were subsequently replaced by full-time employees. A subset of employees from this group is currently contributing to Apple's transition to AI products based on large language models, with plans for a formal announcement in June.
