- Apple has canceled plans to lay off 5,000 AppleCare employees under CEO John Ternus
- The layoff was part of a broader workforce and operations review to reduce costs
- Smaller staff cuts and budget reductions are still part of Apple's restructuring efforts
Apple has dropped a planned layoff of around 5,000 AppleCare employees as new CEO John Ternus moves to make the company leaner, faster and more focused on product engineering, Bloomberg reported.
The planned cuts were part of a broader review of Apple's workforce and operations as Ternus looks to reduce costs and streamline decision-making. The company ultimately decided against the large-scale AppleCare reduction, while smaller workforce cuts and budget reductions remain part of the restructuring, according to the report.
Ternus, who became Apple CEO on September 1 after serving as the company's hardware engineering chief, is also examining how Apple develops and launches products.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Rather than relying as heavily on its traditional spring and autumn release windows, the company is considering more frequent product launches, potentially creating a more continuous pipeline of new devices.
Also Read | Apple-Owned Beats Debuts 'Beats 360' Headphones In India: Check Price, Specs, Availability
The shift reflects Ternus' broader emphasis on engineering. He is considering reducing layers of middle management so engineers have a more direct path to senior decision-makers. The changes are intended to shorten development cycles and give product teams greater flexibility.
The restructuring comes as Apple looks for additional ways to improve efficiency and generate revenue from its existing products while developing new sources of growth. The company has not publicly confirmed the reported organisational changes.
Ternus took over from Tim Cook, who became Apple's executive chairman on September 1. Apple had announced the succession in April, naming Ternus as Cook's successor after his long tenure as senior vice president of Hardware Engineering.
The new CEO has already signalled an engineering-led approach. At his first major Apple product event, Ternus placed the iPhone at the centre of the company's AI strategy and introduced the latest hardware lineup, including the iPhone Duo.
Also Read | Mac Mini And Mac Studio: Price, Performance, Availability And More
The decision to retain AppleCare staff while pursuing smaller cuts suggests that Ternus' efficiency drive is being paired with efforts to preserve customer support capacity as Apple reorganises around faster product development.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
