Apple Inc is better known for its iPhones, premium retail stores, and carefully managed product launches, but not for layoffs.
Its last known layoff was in November 2025, when it reduced some sales positions as part of a restructuring, and they were asked to apply for new roles.
Before that, the last major layoff was in 2024, when Apple closed its electric self-driving car project, Project Titan, affecting over 600 employees.
But now, in 2026, as Apple prepares to close several retail stores, one shutdown is drawing far more attention than the others.
The iPhone maker plans to close its store at Towson Town Center mall in Maryland, effective June 24, 2026. A location that made history in 2022, becoming the first Apple retail store in the United States to be unionized.
The closure will impact 78 employees.
Apple has also planned closures at Trumbull Mall in Connecticut and North County Mall in California, with employees from those stores expected to continue their roles at nearby Apple retail locations, according to Reuters.
But workers at the Towson, Md., store say they are not receiving the same treatment, and that has resulted in legal troubles for the tech giant.
Apple faces backlash over store closure
The International Association of Machinists and Aerospace Workers (IAM), which represents employees at the Towson location, has filed an unfair labor practice charge with the National Labor Relations Board (NLRB).
It is accusing Apple of discriminating against union-represented workers by denying them the same transfer rights and opportunities provided to non-union employees affected by store closures elsewhere.
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The complaint says Apple announced the Towson closure on April 9 and has since denied Towson employees the transfer rights and other opportunities provided to non-represented employees affected by store closures at other locations.
The union argues that Apple’s actions were taken in retaliation for protected activity and were designed to discourage workers from exercising their labor rights.
“The IAM Union is outraged by Apple’s decision to close its Towson, Md., store – the first unionized Apple retail location in the United States – and abandon both its workers and a community that relies on it for critical services and its unique access to public transit,” the union said in a statement.
The Union has also rejected Apple’s claim that the collective bargaining agreement prevents relocation, calling that explanation “simply false” and saying the closure raises concerns that the move is an attempt to weaken the union.
Apple has since rejected the accusations.
“We strongly disagree with the claims made, and we will continue to abide by the agreement that was negotiated and agreed with the union. We look forward to presenting all of the facts to the NLRB,” said Apple in its official statement emailed to TheStreet.
The tech giant also added that, under the union agreement, it only requires rehiring or transferring employees if Apple opens a new store within 50 miles of Towson’s current location in the event of a closure.
In other circumstances, Apple is only obligated to pay severance. Additionally, Apple does not have any plans to relocate to this market, and if it did, under the union contract, these employees would have the right of first refusal.
Union says Apple is treating workers differently
The key issue is not just that Apple is closing a store.
It is how the Towson workers say they are being treated compared with employees at other Apple locations that are also closing.
IAM is questioning why employees at other non-union locations that were stated to be closing were guaranteed job transfers, but “Towson workers were told to apply through the same portal as outside job applicants.”
The union has also started a petition, targeting 1,600 letters to Apple, of which 1,089 have already been sent.
“When this store closes, working-class residents, disproportionately Black and brown Baltimoreans, will have nowhere to go for in-person tech support, repairs, and services,” the petition says.
The letter also says that “small business owners who depend on Apple’s Business team will be left without a local resource.”
The nearest Apple Store in Columbia, MD, is about a 30-minute drive away, but it can take over 2 hours by bus, according to Bloomberg Law.
That matters because Apple Stores also serve as repair, technical support, and customer-service hubs for people who need help with iPhones, Macs, iPads, and other devices.
The union has framed the Towson closure as both a labor issue and a community access issue.
For Apple, the move is strategic, and the Towson closure is tied to conditions at the mall, including the departure of several retailers and its declining condition.
Bloomberg Law reported that the mall is about 26% vacant, though major tenants, including Macy’s, Lululemon, Gap, Nordstrom, and American Eagle Outfitters, remain open.
The complaint will now be heard by the NLRB, and a decision is pending. Until then, IAM is requesting that Apple consider a new Towson location, keeping its commitment to the community by stating, “Towson deserves better than abandonment.”
The dispute also comes during a major transition year for Apple. The company recently announced that Tim Cook will become executive chairman and John Ternus will become CEO effective Sept 1, 2026, marking Apple’s biggest leadership change in 15 years.
Related: Apple’s stock performance under Tim Cook: A retrospective
