Apple Inc. is shutting down its 121-person Data Operations Annotations team in San Diego, pushing many of its employees towards either relocation or termination. This team, integral to enhancing Siri's functionality, faces a stark choice: move to Austin to join the larger part of the team there, or face termination by April 26.

The announcement, made by Christine DeFilippo, a top deputy to Apple AI chief John Giannandrea, has put the San Diego team in a dilemma. According to the sources, Apple had initially indicated a relocation within San Diego, causing surprise and unease among the staff when the actual decision was revealed.

The move aligns with Apple's broader strategy of centralizing its US-based Data Operations Annotations teams in Austin. An Apple spokeswoman confirmed this decision, emphasizing that it offers an opportunity for all current employees to continue their roles in the new location. The company is also committed to its operations in San Diego, where it continues to expand its engineering teams.

However, the majority of the affected workers in San Diego have indicated their reluctance to relocate to Austin. This unwillingness stems partly from concerns about eligibility for other roles within Apple, as many employees lack engineering backgrounds. The San Diego team's work, focusing on Siri use in multiple languages like Hebrew, English, Spanish, Portuguese, Arabic, and French, is crucial for the tech giant's AI capabilities.

For those willing to move, Apple offers a $7,000 relocation stipend. Conversely, employees who choose to leave will receive four weeks of severance, an additional week for every year worked, and six months of health insurance.

The situation represents a critical juncture for Apple, which has largely managed to avoid layoffs during the pandemic, in contrast to its tech peers. The Data Operations Annotations group, initially comprised of contractors who listened to Siri queries, was transformed into a team of full-time employees after privacy concerns in 2019. Their role has evolved, with some members now assisting in Apple's transition to AI products based on large language models (LLMs).

Apple's plan to announce its LLM strategy in June comes amidst efforts to catch up in the AI domain. This development highlights the company's continued investment in AI and machine learning technologies, despite facing challenges in managing its workforce during strategic transitions.