Apple Inc. (NASDAQ:AAPL) would slash around 200 jobs at Beats electronics after the acquisition, says a report from the New York Post citing a source with the knowledge of the development. There would be job cuts in Human Resource, finance and other such departments, where there is an overlap between the two companies, according to the source.
A general trend
Generally, large acquisitions and mergers are followed by the job cuts, and same would happen with Apple, when the company will advance with the acquisition process.
Going by history, Beats has been the largest purchase of Apple Inc. (NASDAQ:AAPL), which would give it the music streaming service as well as the Beats headphones line. At the end of the June, the iPhone maker has 41,300 employees working for it. There was no immediate response from Beats spokeswoman, as well as, from Apple spokesperson.
“Last week everyone was given an offer from Apple. Some were transitional offers with a set end date,” says the report citing a source close to the situation said.
Beat got into a legal brawl last week, when Bose sued its hardware arm for infringing the patented noise canceling technology. Apple Inc. (NASDAQ:AAPL) will accede to the lawsuit once it takes the operational control in August. The deal is supposed to be closed on August 1, and around 40% of the Beats’ global workforce will be ousted.
Top executives to join Apple
High-profile executives of Beats’ management like music chiefs Luke Wood and Ian Rogers and creative boss Trent Reznor will move to Apple, as per the reports of Business Insider.
Reznor wrote in his tweet on June 2 “ …but YES I am still CCO of Beats Music and looking forward to what lies ahead with Apple.” Co-founders of Beats Music, Jimmy Lovine and Dr. Dre are already shifting to Apple. Beats has its office in Culver City, which is near to the companies like Nike, Maker Studios and PopSugar.
Apple-Beats deal limelight was hogged by the iPhone 6 news, which is expected to be released by September. Recently, European Commission gave a go signal to the deal after ensuring that the combined market shares of both the companies in headphone business in not close to the competing companies.