Apple's layoffs under Ternus start with managers, not support staff
Key takeaways
- Bloomberg reports Apple dismissed several hardware engineering program managers, including about six directors, in the two weeks before 29 September.
- A plan to lay off about 5,000 AppleCare staff and replace them with AI agents is reportedly on hold.
- Apple has not confirmed any of this, and no company-wide layoff number has been reported.
About six directors. That is the most specific number in the Apple layoffs story, and it is a long way from the thousands of jobs the headlines suggest.
Bloomberg reported on 29 September that in the two weeks before, Apple dismissed several program managers in its hardware engineering group, including about half a dozen directors. Those affected have a few weeks to find other roles inside Apple or face layoffs later this year. Apple declined to comment, so none of this is confirmed by the company.
What Ternus is reportedly doing
John Ternus became Apple CEO on 1 September, succeeding Tim Cook. According to Bloomberg, he wants to remove some layers of middle management and make Apple less tied to its fixed spring and autumn launch schedule. Smaller cuts were also reported in the Siri, Vision Pro, AI software and Fitness+ teams.
Budgets are tightening too. Some planned 2027 increases were reduced, headcount is being held flat and marketing spend has been cut. Memory chip costs are rising, and Apple is reportedly absorbing part of the increase, a squeeze we have followed in our look at Samsung's 2027 memory sales.
The AppleCare plan
Bloomberg says Apple drew up a plan over the summer to lay off about 5,000 AppleCare support workers and replace them with AI agents. That plan is reportedly on hold and not being pursued. Secondary summaries disagree on whether it was scrapped or paused, and neither counts as a completed job cut.
Why it matters
Services revenue fell quarter on quarter in the June quarter, the first such decline since 2022, and Bloomberg says Ternus, Eddy Cue and CFO Kevan Parekh are hunting for new revenue. That is the backdrop to the cuts. For more on the new boss, see our first week with CEO Ternus.
What to watch
Watch for an actual number. The reports so far describe managers, flat budgets and a paused plan, not a company-wide layoff round. If Apple confirms a figure, or the AppleCare plan returns, the story changes from a trim to a change of direction.
