Apple CEO wants to streamline operations and cut management layers
What's the story
Apple is restructuring its hardware team under the leadership of CEO John Ternus, with an aim to move beyond some of its longstanding practices. This is part of a larger strategy to streamline operations and reduce management layers within the company. According to Bloomberg's Mark Gurman, Ternus wants Apple to hold more regular product launches while simplifying different departments.
Restructuring details
Layoffs and retirements in the hardware group
As part of the restructuring, Apple's hardware group has witnessed some layoffs.
Ternus is said to be planning to eliminate certain program manager positions to improve communication within the team.
In a broader transition, two of Apple's senior display executives, Wei Chen and John Xhing, are being moved into smaller advisory roles after nearly three decades at the company.
These changes are seen as steps toward their eventual retirement.
Leadership changes
New vice presidents appointed in engineering
Along with the restructuring, Apple has also appointed three new vice presidents in engineering.
The appointees, Rajesh Ambati, Louie Sanui netti, and Derek Shaeffer, are said to be focusing on software or hardware that connects Apple devices to the internet.
The company is also considering wider workforce changes and has even considered laying off 5,000 support employees as part of its streamlining efforts.
AI integration
Apple exploring AI to replace employee roles
Apple is also looking at the possibility of using AI technology to replace some employee roles.
The company thinks that AI-powered phone and web agents could handle some tasks currently done by employees whose jobs may be cut.
These virtual assistants can answer questions, provide step-by-step troubleshooting instructions for Apple products, and even connect users with a human adviser if needed.