Apple CEO John Ternus is reportedly considering targeted workforce reductions and project cancellations as part of an effort to streamline the company and focus resources on its key priorities.
According to media reports, any layoffs under the new leadership are expected to be relatively limited in scale, with reductions potentially concentrated within larger teams. Some projects are also reportedly being reviewed or cancelled as Apple reassesses its allocation of employees and resources.
Apple has not publicly announced a broad workforce reduction programme.
Rising Component Costs Add Pressure
The reported workforce review comes as technology companies face higher costs associated with components used in advanced computing systems.
Memory prices have risen amid supply constraints, particularly for high-bandwidth memory and advanced DRAM used extensively in AI infrastructure. Higher component costs can put pressure on hardware margins and supply planning.
Apple has previously discussed supply-chain challenges, with former CEO Tim Cook warning about continuing pressures affecting components and other inputs.
Services Revenue Also Under Watch
Apple is also navigating changes in its services business.
According to the information cited in the reports, services revenue declined sequentially in June for the first time since 2022. The services segment includes businesses such as the App Store, advertising, cloud services and subscriptions.
The combination of component costs and changes in revenue trends has increased attention on how Apple allocates resources across its businesses.
Project Reviews Could Affect Employees
If the reported restructuring proceeds, its impact could extend beyond direct job reductions.
Employees working on projects that Apple decides to discontinue or scale back could face changes in responsibilities or reassignment. Teams whose priorities are considered more closely aligned with Apple’s strategic direction could receive additional resources.
For HR teams, such changes can involve workforce planning, internal mobility, employee communication and transition support.
A New Leadership Phase for Apple
Ternus’s move into the CEO role marks a new leadership phase for Apple. Any changes to staffing and project priorities would provide an early indication of how the company intends to organise its resources under the new leadership.
The reported approach appears focused on selective adjustments rather than a company-wide reduction in headcount. However, Apple has not publicly confirmed the reported layoffs or provided details about specific teams or projects affected.
As Apple evaluates costs, supply conditions and business priorities, workforce decisions are likely to remain closely connected to where the company chooses to invest its resources.
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