Apple CEO John Ternus is restructuring the company to accelerate product development and streamline engineering operations. The strategy includes reducing reliance on traditional spring and autumn release cycles in favor of a year-round launch schedule. Ternus aims to eliminate middle management layers to foster a more direct connection between engineers and executives.
The company has initiated cost-cutting measures, including layoffs within the hardware engineering department. Specifically, several project managers, including approximately six directors, have been affected. Employees unable to secure new internal roles face termination. Small-scale layoffs have also occurred in the Siri, Vision Pro, and Fitness+ teams.
Apple is shifting its focus toward AI-driven development to increase efficiency and automate tasks. While the company previously considered cutting 5,000 AppleCare support roles due to AI integration, that plan was shelved. Departments are now facing tighter budgets, with some teams instructed to reduce marketing expenditures to offset rising component costs.
The product roadmap for next year includes new AirPods with cameras, smart glasses, and a redesigned iPhone for the 20th anniversary of the device. Ternus is working with CFO Kevan Parekh and services head Eddy Cue to identify new revenue streams as growth in the services sector slows and the App Store model faces pressure.
