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 employees in the United States, Bloomberg reported on Nov. 24, in a rare layoff for the tech giant.

He added that the outages come as the company seeks to review and streamline the way it delivers products to businesses, governments and schools.

An Apple spokesperson confirmed the layoffs to Bloomberg and said the company was “reorganizing” sales in its sales division, but did not provide details.

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

Just a few weeks ago, Apple cut nearly 20 positions from its sales teams in Australia and New Zealand, the report said.

Apple layoffs: Who is affected?

Dozens of sales employees were killed across the organization, with some teams hit harder, according to the report. Sources told Bloomberg that management notified affected workers within the last few weeks.

Those affected include account managers serving schools, government agencies and large businesses, as well as staff in Apple’s briefing centers for corporate meetings and product demonstrations for potential large customers.

Many of those affected were surprised, as Apple was one of the rare technology companies to cut jobs. And this decision came at a time when the company was generating record revenue; It’s on track to reach close to $140 billion in the December quarter thanks to successful product launches.

Laid-off staff can find another post on Apple: How?

Employees who lose their jobs have until January 20 to move to another position in the company, otherwise they will be terminated with a severance package. Apple advertises sales positions on its job website and tells laid-off workers they can 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 motivated by an effort to shift more sales to third-party sellers, which the company calls channels. They said some organizations preferred to work with these indirect vendors, and that the change helped Apple reduce internal costs such as salaries.

The cuts included longtime executives and, in some cases, employees who had been with Apple for 20 or 30 years. One of the main targets of the layoffs: a government sales force that works with agencies like the U.S. Department of Defense and the Department of Justice.

This team had already faced challenging conditions following the 43-day U.S. government shutdown and cutbacks imposed by the Department of Government Efficiency (DOGE), which sought to cut spending.

Apple’s sales group reports directly to Chief Executive Tim Cook and is overseen by longtime vice president Mike Fenger. Fenger MP Vivek Thakkar took on expanded responsibilities earlier this year and now oversees all corporate and education sales.

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

Apple is less reliant on layoffs than most of its tech peers; Cook had previously said the move was a “last resort”. However, the company made cuts from time to time. When Apple eliminates jobs, it typically targets them in a way that prevents them from triggering Worker Adjustment and Retraining Notifications, or WARN notices, required by U.S. labor law.

In 2024, Apple laid off an unusually large number of employees due to product cancellations and a shaky economy. This included workers on the long-running, now-shuttered driverless car project, and in-house efforts to develop displays for those devices. Some AI-related teams and parts of the services division were also affected.

Elsewhere in the tech world, layoffs remain more common. Earlier this month, Amazon.com Inc. While Meta Platforms Inc. announced that it would lay off more than 14,000 employees. recently cut several hundred roles in its AI organization.

(With input from Bloomberg)