Apple CEO John Ternus is considering a leaner organisational structure, with some staffing cuts already reported as he weighs changes aimed at accelerating product development and reducing management layers, according to Bloomberg.
Ternus took over as Apple chief executive on 1 September, succeeding Tim Cook after 15 years. The 25-year Apple veteran previously served as the company's senior vice president of Hardware Engineering.
The exact number of potential job losses remains unclear.
Ternus Eyes Leaner Apple
In recent weeks, Apple's hardware engineering division has reportedly cut several engineering programme manager positions, including around half a dozen director-level roles, according to reports. Some affected employees have reportedly been given weeks to seek other positions within Apple before potentially being laid off.
Apple has also reportedly made staffing cuts in areas including Siri, Vision Pro, and AI software engineering. The company has also made staffing changes within its Fitness+ organisation, including reported cuts affecting its audio content team.
Moreover, Apple is reviewing budgets across the company as part of the reported changes. Some divisions that had expected higher budgets and headcount in 2027 may not receive those increases, according to reports. The changes could lead to further staff reductions, but their scale and timing remain uncertain.
The reported changes at Apple come as major technology companies reassess their organisational structures and workforce needs. Uber announced in September that it would cut about 10% of its workforce, or roughly 3,300 jobs, while removing management layers and simplifying team structures.
Amazon and Meta have also announced significant workforce reductions this year, citing different priorities. Amazon has pointed to fewer organisational layers and less bureaucracy, while Meta has focused on efficiency, management changes, and AI-related work.
Product Launches, AI-Driven Changes
The reported changes extend beyond staffing. Bloomberg reported that Ternus is considering moving away from Apple's traditional spring and autumn release schedule, potentially allowing products to launch at different points throughout the year as the company seeks to move faster in the AI era.
Apple is also reported to be preparing several products for 2027, including camera-equipped AirPods, smart glasses, and a 20th-anniversary iPhone. According to reports, Ternus is putting greater emphasis on engineering as Apple explores additional areas of growth.
Artificial intelligence is also part of the broader discussion around Apple's workforce and operations. Apple had reportedly considered laying off about 5,000 AppleCare customer-service employees after assessing whether AI-powered agents could handle some of their work, but the plan was later put on hold.
Supply Constraints Add a Separate Challenge
Separately, Apple is facing supply constraints and rising memory costs. During its fiscal third-quarter earnings call, executives said the company expected to pay more for memory in the September quarter, while supply constraints were expected to have a greater impact on iPhone, Mac, and iPad supply.
Apple reported record fiscal third-quarter revenue of $109.4B and record June-quarter Services revenue of $30.7B.
During his final earnings call as CEO, Cook described rising memory prices as a '100-year flood'. It is also reported that Ternus and other Apple executives are exploring additional services and ways to generate more revenue from existing products and offerings.
