Apple is reportedly preparing for significant changes to the way it develops products, organises its workforce and manages spending. The company has explored greater use of artificial intelligence in customer support while also considering changes to its management structure and product launch strategy. The plans come as Apple faces pressure to move faster, experiment with new products and get more output from its existing workforce. Some changes are already underway across the company, while others remain under consideration and could take years to fully implement.
Apple Considered AI-Driven AppleCare Cuts as Ternus Plans Restructuring
Bloomberg’s Mark Gurman reports that Apple had considered cutting around 5,000 AppleCare support jobs and using AI-powered agents to take over some of their responsibilities. The company has since put those plans on hold indefinitely. Apple could still revisit the idea of reducing its AppleCare workforce or hiring fewer people for these roles in the future.
Apple has also started using a generative AI assistant for AppleCare calls in the US and Canada. It can help with troubleshooting and hand the call over to a human adviser when needed.
Gurman reports that the AppleCare plans form part of a broader restructuring being considered under CEO John Ternus. According to his report, Ternus wants Apple to broaden its device portfolio while shortening the time needed to develop and launch new products.
Apple is also reportedly considering moving away from its traditional spring and autumn release cycles. This could allow the company to introduce devices at different points throughout the year. Gurman also reports that Ternus believes Apple needs to become more experimental as the industry moves further into the AI era.
Gurman further reports that Ternus is looking to reduce the number of management layers between engineers and senior executives. During an internal presentation, Ternus reportedly showed data on Apple’s annual headcount growth and argued for getting more work done without a corresponding increase in employee numbers.
Some of those changes are reportedly already underway. According to Gurman, Apple has dismissed roughly half a dozen directors and several engineering programme managers over the past two weeks. The affected employees have reportedly been given a few weeks to find other positions within the company. Those who do not find another role will be laid off.
Gurman’s report also points to cuts beyond management. Recent reductions have reportedly affected teams working on Siri, Vision Pro, AI-related software engineering and Fitness+. Some Apple employees reportedly believe further layoffs could follow later this year and in early 2027.
On the business side, Gurman reports that Ternus is looking for additional revenue from Apple’s existing products as growth in the company’s services business slows. Apple has also reportedly discussed launching new services.
Early planning for 2027 has meanwhile involved lower planned increases in budgets, flat staffing levels and reduced marketing spending, according to Gurman.
The changes could also affect how Apple’s product teams work. Gurman reports that managers have described greater pressure to move faster, with employees taking on more hands-on work.
Product groups are reportedly being asked to deliver more products, more frequently and on shorter timelines. Gurman cautions that changing Apple’s long-standing practices could prove difficult and may take several years.
