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Major layoffs impacting Beats during Apple takeover, sources say

updated 03:30 pm EDT, Wed July 30, 2014

Developers, creative workers being kept

Although the takeover has yet to be fully approved legally, some workers and technology resources are already being shifted from Beats to Apple, sources say. Apple executives have allegedly visited Beats' California headquarters this week and the last, offering some workers new positions at Apple while telling others that their jobs will be cut. Many Beats employees in creative or development roles are being offered work at Apple; many of these are allegedly headed to Apple's Cupertino's headquarters, but the company is keeping both the Santa Monica offices and some engineers associated with Beats Music.

The main victims of the takeover are said to be people in Beats' support, finance, and HR departments. Those branches have already been mostly dismantled, with workers being fired, moved to Cupertino, or promised jobs until January. Apple has even reportedly set up a special hotline that Beats staff can call to discuss transition and severance issues.

Technology-wise, Apple is said to be transitioning Beats Music into the iTunes infrastructure. The sources comment that Beats' technology is not readily compatible with Apple servers, which may require major changes in the Beats Music architecture.

An unresolved question is what will happen to some key executives. While co-founders Jimmy Iovine and Andre Young (Dr. Dre) are on board, it's unknown what will happen to chief creative officer (and Nine Inch Nails frontman) Trent Reznor, or Beats Music CEO Ian Rogers.

by MacNN Staff



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