Apple is reportedly planning major changes under new CEO John Ternus. According to a Bloomberg report by Mark Gurman, the iPhone-maker is looking at faster product launches, a leaner organisational structure and more focus on engineering. Ternus wants Apple to become more experimental and launch products more often. The company may also reduce some middle-management roles as part of the changes. Apple is also looking for new ways to increase revenue as growth in its services business slows.
For years, Apple has largely followed spring and fall launch schedules. Ternus is reportedly considering a different approach. The CEO wants Apple to release products more frequently throughout the year.
The change could take time because Apple’s existing product development process is long established. Employees believe changing these practices could take years.
Apple already has several major products planned for next year. These reportedly include camera-equipped AirPods, the company’s first smart glasses and a redesigned iPhone marking the iPhone’s 20th anniversary.
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Ternus has pushed for a smaller organisation for years. While leading Apple’s hardware engineering team, he reportedly told employees that the company should hire fewer people and expect more from its existing engineers.
This approach is now being reflected in Apple’s hardware engineering division. In the past two weeks, the company has reportedly dismissed several engineering program managers (EPMs). These employees play an important role in managing product timelines and coordinating work between teams.
The cuts have also affected around half a dozen directors. Employees who lost their roles have been given a few weeks to find other positions within Apple. Those who do not find new roles are expected to be laid off later this year.
Apple has also made smaller job cuts across different teams in recent months. Some projects have been cancelled or scaled back earlier in development, particularly those seen as less important to the company’s business.
The changes have affected teams working on Siri, Vision Pro and AI software. Apple has also reduced the size of its Fitness+ team, as per the report.
Gurman also reported that Apple explored plans to lay off around 5,000 AppleCare customer-service workers during the summer, including many who work from home. However, Apple later put the plans on hold.
Still, many employees believe more layoffs may happen later this year or early next year. Some teams are also facing tighter budgets, including cuts to marketing spending.
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Ternus, services head Eddy Cue and CFO Kevan Parekh are also looking for ways to increase revenue as Apple’s services business growth decelerates. The company is considering new services and ways to generate more money from existing products and offerings.
Meanwhile, higher component costs caused by a wider memory shortage are adding pressure. Apple has raised prices in some cases but is also absorbing some of the increased costs to avoid putting too much pressure on customers.
One person familiar with the situation was quoted as saying in the report, “Everything is a lot more hands-on than it used to be.” “It’s hectic right now.”