Apple CEO John Ternus-Led Overhaul Could Bring Faster Launches, Job Cuts: Mark Gurman

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.

The AppleCare plans reportedly form part of a broader restructuring under CEO John Ternus. He is said to be looking at ways to broaden Apple's device portfolio while shortening the time needed to develop and launch new products.

The company is also considering a move away from its traditional spring and autumn release cycles, according to the report. Such a change could allow Apple to introduce devices at different points throughout the year. Ternus is also said to be pushing for a more experimental approach as the industry moves further into the AI era.

The proposed overhaul could also affect Apple's management structure. Ternus reportedly wants to reduce the number of layers between engineers and senior executives. During an internal presentation, he is said to have highlighted Apple's annual headcount growth and argued that the company should get more work done without increasing its workforce at the same pace.

Some changes have reportedly already taken place. Apple has dismissed roughly half a dozen directors and several engineering programme managers over the past two weeks, according to the report. The affected employees have reportedly been given a few weeks to find other positions within the company. Those who do not secure another role will be laid off.

The report also points to cuts across teams working on Siri, Vision Pro, AI-related software engineering and Fitness+. Some Apple employees believe further layoffs could come later this year and in early 2027.

Ternus is also reportedly looking for ways to generate more revenue from existing products as growth in Apple's services business slows. The company has discussed launching new services as part of those plans, according to the report.

Early planning for 2027 has reportedly included smaller budget increases, flat staffing levels and reduced marketing spending. These changes are part of the cost-cutting measures being considered as Apple reviews its spending and workforce.

The report also describes growing pressure within Apple's product development teams. Managers are said to have claimed that employees are being asked to work faster and take on more hands-on responsibilities. Product groups are also being pushed to deliver more products, more frequently and within shorter timelines. Any changes to Apple's long-standing approach to product development and management could take years to implement.