Apple will announce new job cuts and layoffs in an attempt to keep pace with the cost of the company’s $49 billion acquisition of Beats Electronics, according to a report in The Wall Street Journal.
The Journal reported on Monday that the company will cut about $9 billion in its workforce, but it didn’t elaborate on the reasons behind the job cuts.
It also didn’t specify which positions would be cut.
Apple, which has been working to cut its workforce by about 15% as part of its effort to rein in costs, will announce the cuts to a conference call Tuesday morning.
Apple’s CEO Tim Cook said in February that the goal is to reduce the company to a size that could make it “a viable company for people to work for.”
The news comes just a few weeks after Apple’s stock fell as much as 5% in premarket trading after the company reported a lower-than-expected quarterly profit, and as investors began to worry about Apple’s financial health.
The company said on Tuesday that it would reduce its dividend by a fifth to 7.5% for the fiscal year ending in March, and the stock dropped by 1.2% in after-hours trading.
Apple also said it was planning to reduce its workforce from about 9,500 to about 7,000 by the end of the fiscal quarter.
Apple also said that it is planning to invest $300 million to $400 million into an AI-focused research lab in its Palo Alto, Calif., headquarters.
The Journal reported that the lab, which it called Apple’s “artificial intelligence lab,” will focus on artificial intelligence for its next-generation iWatch.
The report did not specify how much of Apple’s new research will focus specifically on artificial-intelligence.
Apple’s sales have suffered in the past two quarters, but the company has continued to expand its offerings and have continued to hire workers.
The company recently announced it will continue to use the iPad as a primary platform for its iPhones and iPads.
Apple has said it expects the iPad’s continued growth to continue for the foreseeable future.