Apple's $3 billion acquisition of Beats Electronics is only nearing completion, with a target date of Aug. 1. However, reports have already surfaced that Apple will be firing 200 Beats employees as the music company transitions into Apple's umbrella.
The rumored layoffs represent about 40 percent of the global workforce of Beats.
Apple has reportedly already begun transitioning several important Beats employees and resources, with Apple executives visiting the headquarters of Beats in Southern California to offer employees employment in Apple.
However, some employees were informed that they are not included in the transition and will be laid off.
Many employees of Beats that are working in creative and development departments have received offers from Apple, with many moving to the company's offices in Cupertino. However, it is reported that Apple is planning to keep the Beats headquarters in Santa Monica, where Beats Music engineers will continue to work.
However, most employees of Beats in overhead positions are facing the opposite situation, with the company's human resources, finance and support departments reported to have already been dismantled. Some employees have already been fired, a handful was offered employment in Cupertino, and some were offered employment but only until the end of January next year.
Apple has reportedly set up a phone hotline that is dedicated for employees of Beats to talk to representatives of Apple's human resources department to discuss about transition plans or severance packages.
Apple, however, has issued a statement that contradicts all other reports, saying that the company has extended a job offer to all employees of Beats.
"Because of some overlap in our operations, some offers are for a limited period and we'll work hard during this time to find as many of these Beats employees as we can another permanent job within Apple," the company said in the statement.
In addition to the transition of employees, Apple has started to transition the technology of Beats Music into iTunes, which is not an easy task as the technologies are not compatible with each other.
Beats co-founders Dr. Dre and Jimmy Iovine have already committed to Apple, and Chief Creative Officer Trent Reznor and Beats Music CEO Ian Rogers will also join Apple after a period of uncertainty.
Apple's $3 billion acquisition of Beats, formally announced at the end of May, received polarizing reviews. While some analysts questioned the price of the deal, analysts saw the acquisition as a great thing for the whole streaming business and music industry.
