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Apple cuts dozens of sales roles in major restructuring
Apple Inc. has cut dozens of jobs in its global sales division to streamline how it serves businesses, educational institutions and government agencies. The move marks a rare instance of layoffs at the company, which has traditionally avoided large-scale workforce reductions.
People familiar with the matter told Bloomberg, employees were informed over the past two weeks, with cuts spanning several sales teams. The affected roles included account managers handling major corporate and institutional clients, as well as staff at Apple's briefing centers that host demonstrations for potential enterprise customers.
Confirming the reshuffle, Apple said in a statement, “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 company did not specify how many positions were impacted.
The changes come as Apple's revenue continues to rise, with the company expected to post nearly $140 billion in sales for the December quarter — its highest ever. Despite the strong financials, the restructuring is seen as part of Apple's effort to remove overlapping responsibilities and reduce internal costs.
The layoffs follow earlier cuts in Australia and New Zealand, where about 20 roles were eliminated. Employees affected by the current round have until January 20 to find another position within the company or will receive a severance package.
Some of the impacted staff said the decision may be linked to Apple's growing reliance on third-party resellers — known internally as “the channel” — which often handle institutional sales and help lower operational expenses.
Longtime employees, including managers with 20 to 30 years of experience, were among those let go, according to the Bloomberg report. One of the hardest-hit groups was the government sales team, which works with clients such as the U.S. Defense and Justice Departments. The team had already been constrained by government spending reductions and policy changes.
Apple's sales operations, overseen by Chief Executive Officer Tim Cook and Vice President Mike Fenger, are also seeing internal leadership changes. Fenger's deputy, Vivek Thakkar, now leads all enterprise and education sales.
Apple has historically avoided mass layoffs, with Cook calling them a “last resort.” However, in 2024, the company trimmed headcount in projects related to self-driving cars, custom display technology and certain artificial intelligence initiatives.
The decision aligns Apple with a broader trend across the tech sector, where cost restructuring continues. Amazon recently announced plans to cut 14,000 jobs, while Meta Platforms reduced several hundred roles within its AI unit.
Source: EconomicTimes
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