John Ternus, the new CEO of Apple, has initiated a restructuring plan aimed at prioritizing engineering efforts and increasing the speed of product development. The company intends to move away from its traditional spring and autumn product release schedules, shifting toward a more frequent, year-round launch model to remain competitive in the AI era.
The reorganization includes efforts to create a leaner organization. Apple has already begun reducing the number of engineering program managers, with some directors given a few weeks to find alternative roles within the company. Additionally, the firm has implemented targeted layoffs and cancelled several early-stage projects deemed non-critical to profitability.
Ternus is focused on identifying new revenue streams and optimizing profits from existing products. This shift comes as growth in the services division, historically a key driver of profitability, has begun to slow. In the third quarter of 2026, revenue from services saw a decline compared to the previous quarter, marking the first such drop since 2022.
