Beats and Apple Dispute Reports of Layoffs

Illustration by Ed Fotheringham

Apple and a source close to Beats are disputing the characterization in recent reports that a significant round of layoffs is taking place at Beats, saying there have been no layoffs (save for about five performance-based terminations) at the recently acquired company and that all employees have been offered full-time jobs at the Cupertino-based tech giant. But, while no Beats employees' jobs were immediately eliminated, a large number of Beats employees were informed that their positions could be subject to elimination in three months to a year.

"Every single person is going through Apple orientation, they're signing up for healthcare," a Beats source tells Billboard.

Apple spokesperson Tom Neumayr tells Billboard that Apple's intention is to keep as many of Beats' employees in full-time positions as they can. "We're excited to have the Beats team join Apple, and we have extended job offers to every Beats employee. 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 departments most affected by the merger will be operational infrastructure -- human resources, finance, legal.

Other aspects of the report remain unsubstantiated, including problems with integrating Beats Music's technology into iTunes.