Apple CEO John Ternus is undertaking efforts to restructure the company to speed up product development and introduce new products more frequently, according to BloombergIt’s Mark Gurman.
Ternus apparently wants Apple to “expand its device lineup and create a leaner, more engineering-focused organization.” One proposal under consideration is to rely less on Apple’s traditional spring and fall product release cycles, and introduce new devices more quickly and throughout the year. Ternus also reportedly said Apple needed to become “more experimental” to remain competitive in the age of artificial intelligence.
Other plans include eliminating some middle management positions to reduce the corporate hierarchy that separates engineers from senior executives. Ternus believes that “Apple should hire fewer people, ask more of its existing engineers and reduce organizational overload.” During a presentation, he reportedly showed a slide detailing annual headcount growth and argued that “the company should accomplish more with fewer employees.”
Ternus is also looking for new ways to generate more revenue from existing products amid slowing growth in the company’s services business. The launch of new services was also discussed. To reduce costs, early planning meetings for 2027 saw reductions in planned budget increases, stable staffing levels and reduced marketing spending.
Gurman warned that changes to Apple’s long-standing practices will be difficult and could take years. Signs of change are already underway, with layoffs of directors and engineering program managers over the past two weeks.
These employees have only had a few weeks to find another position within the company, and those who do not will be fired. Other recent cuts have focused on teams responsible for Siri, Vision Pro, AI-related software engineering, and Fitness+. Some employees believe more layoffs are possible later this year and early next year.
Apple officials told Gurman there was a sense of pressure to move faster, with “hands-on” work more “hectic” and more demanding. Product development groups are “pressured to deliver more products, more frequently and in shorter time frames.”
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