New Apple CEO John Ternus is reportedly planning layoffs ranging from small-scale ones in large teams, but also cancelling projects.
Apple has recently laid off some staff from Apple Vision Pro development, but a new report says that employees across the company are expecting more serious numbers of redundancies to come. According to Bloomberg, it's a result of new CEO Ternus aiming to cut costs and focus on developing fewer products.
The report also claims, though, that some of the layoffs were linked to employee performance. So at least some of the layoffs appear to be more due to efficiency than to budget cutting.
At the same time, Ternus is said to be canceling some projects that are early in their development. He's believed to be doing this in order to focus on changing how often Apple releases new and updated products.
Canceling projects is likely to mean layoffs, but it's not clear when or really whether these cuts will happen, though. That's because the report also cites Ternus cancelling a plan to lay off around 5,000 AppleCare customer service staff.
It had been expected that AI would be able to perform some of their tasks, but Apple is said to have put these plans on hold.
The expectation that more layoffs are coming is more because of changes to budgets. Reportedly some Apple divisions had been led to expect budget and headcount increases in 2027, but those are now not going to happen.
That does not mean there won't be any increase in budget, but it's said that the headcount is being kept flat. That typically means no recruitment and at most only replacing people who leave or are redeployed.
There have reportedly been a small number of layoffs in Apple Fitness+. But given how that service retains its main costs such as studio space, that is more likely to be refocusing what the service provides rather than saving money.
