Apple layoffs: iPhone maker cut dozens of sales jobs to streamline workforce, eliminate overlapping roles

iPhone maker Apple Inc. has laid off dozens of sales workers in the United States, in a rare job cut for the tech giant, Bloomberg reported on 24 November.

The cuts come as the company looks to review and streamline how it offers products to businesses, governments and schools, it added.

Speaking to Bloomberg, a spokesperson for Apple confirmed the job cuts, saying that the company is “reshuffling” its sales the division, but did not give specifics.

“To connect with even more customers, we are making some changes in our sales team that affect a small number of roles. We are continuing to hire, and those employees can apply for new roles,” the spokesperson said.

Notably, just some weeks back, Apple also cut around 20 roles from its sales teams in Australia and New Zealand, the report said.

Apple layoffs: Who is impacted?

As per the report, dozens of sales employees have been chopped across the organisation, with some teams being harder hit. Sources told Bloomberg that management notified the affected workers over the past couple of weeks.

Those affected include account managers serving schools, government agencies, and major businesses, and also staff at Apple’s briefing centers for institutional meetings and product demonstrations for prospective major customers.

Many of those affected were surprised, as Apple is one of the rare tech companies to ever cut jobs. And as this decision comes while the company has enjoyed record high revenues — on track to reach close to $140 billion in the December quarter, due to successful product launches.

Laid off staff can find another post at Apple: How?

Employees who lost their jobs have until January 20 to secure another position within the company or they’ll be terminated with a severance package. Apple is advertising sales roles on its jobs website and told laid-off workers they could apply for them.

Internally, the company is positioning the layoffs as part of an effort to streamline its sales workforce and eliminate overlapping responsibilities.

But some of the affected workers said the move was driven by an effort to shift more sales to third-party resellers, which the company refers to as the channel. Some organizations prefer to work with those indirect sellers, they said, and the change helps Apple lower internal costs like salaries.

The cuts included longtime managers and, in some cases, employees who have been with Apple for 20 or 30 years. One major target of the layoffs: a government sales team that works with agencies including the US Defense Department and Justice Department.

That team had already been facing tough conditions after the 43-day US government shutdown and cutbacks imposed by the Department of Government Efficiency, or DOGE, which has attempted to slash spending.

Apple’s sales group reports directly to Chief Executive Officer Tim Cook and is overseen by Mike Fenger, a long-tenured vice president. Vivek Thakkar, a Fenger deputy, took on expanded responsibilities earlier this year and now oversees all enterprise and education sales.

Layoffs a ‘last resort’ at Apple: Why cuts now?

Apple relies less on layoffs than many of its tech peers, with Cook saying previously that the move is a “last resort.” But the company has made cuts from time to time. When Apple eliminates jobs, it typically targets them in a way that avoids triggering the Worker Adjustment and Retraining Notifications, or WARN notices, that are required by US labor law.

In 2024, Apple cut an unusually large number of employees due to product cancellations and a shaky economy. That included workers on its long-running — and now shuttered — self-driving car project and an effort to develop in-house screens for its devices. Some AI-related teams and parts of the services division were also affected.

Elsewhere in the technology world, layoffs remain more widespread. Earlier this month, Amazon.com Inc. said it would cut more than 14,000 employees, while Meta Platforms Inc. recently culled several hundred roles in its AI organization.

(With inputs from Bloomberg)