In a surprising turn of events, Apple, the world-famous iPhone maker, has dismissed around 185 employees, mostly Telugu-speaking individuals, in the United States. These employees were allegedly involved in exploiting Apple’s Grant Programme in collaboration with certain Telugu associations in the US.
The fraudulent scheme involved Telugu associations soliciting donations from Apple’s Telugu employees for their non-profit groups. Employees generously donated, and Apple, under its corporate social responsibility (CSR) program, matched these donations. However, investigations revealed that the donated funds were secretly funneled back to the employees after Apple matched the contributions, creating a fraudulent flow of funds.
Apple’s Finance department uncovered the irregularities and informed the Internal Revenue Service (IRS). Subsequent investigations revealed that the Telugu associations had manipulated Apple's CSR system to extract illegitimate funds with the aid of these employees. As a result, Apple gave the implicated employees a choice: resign citing loss of integrity or face direct termination.
This decision affected about 185 staff across various levels, from senior managers to entry-level executives, all based in Apple’s Bay Area office. Interestingly, this controversy comes as Apple prepares for Indian-origin Kevan Parekh to take over as its Chief Financial Officer (CFO) starting January 1, 2025.