Apple Inc. recently laid off dozens of employees in its sales teams, Bloomberg reported on Monday. The move is aimed at streamlining the company’s approach to selling products to businesses, schools, and government organisations. Employees affected by the layoffs were informed over the past 15 days. Such broad job cuts are unusual for the iPhone maker, which rarely implements layoffs.
Apple cuts some sales jobs
The cuts hit many parts of Apple’s sales organisation. Some teams were affected more than others. The company did not say exactly how many jobs were slashed. The affected positions included:
- Account managers who work with big businesses, schools, and government agencies
- Staff at Apple’s briefing centres, where potential big customers see product demonstrations
The cuts affected even longtime managers, some who have worked at the company for 20 or 30 years. A major target was a government sales team that works with agencies like the US Defence Department and the Justice Department. This team had already faced challenges due to a 43-day US government shutdown and spending cuts.
Apple confirmed on Monday that it is reorganising its sales division but did not share exact details. A company spokesperson told Blooberg, “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.”
Meanwhile, Apple’s sales group reports directly to CEO Tim Cook. The team is overseen by Vice President Mike Fenger. Earlier this year, Vivek Thakkar, Fenger’s deputy, took on more responsibilities and now manages all enterprise and education sales.
What happens to laid-off employees
Employees who lost their jobs have until January 20 to find a new position at Apple. If they don’t, they will be given a severance package. Apple has posted open sales roles on its job website, and laid-off employees can apply.
The layoffs came as a surprise to many employees, particularly as Apple’s revenue continues to grow rapidly. The company is projecting nearly $140 billion in sales for the December quarter, which would set a new record.
The firm is also planning to release a new low-end laptop early next year. This could help the company reach more business and education customers. Earlier, Apple had already cut about 20 sales roles in Australia and New Zealand.
The company says the layoffs are part of a plan to make the sales team simpler and reduce overlapping work.
Why is Apple cutting jobs?
Some workers believe the real reason for the layoffs is to move more sales to outside resellers, called the “channel.” Many organisations prefer to work with these indirect sellers. This helps Apple save money on salaries and internal costs.
Apple usually avoids layoffs compared to other tech companies. Tim Cook has said that layoffs are a “last resort.” When Apple does cut jobs, it tries to do so without triggering special legal notifications required in the US.
While Apple is careful with layoffs, other tech companies continue to cut jobs. Amazon recently said it would lay off over 14,000 employees. Meta also cut hundreds of roles in its AI division.