Apple cuts 147 jobs weeks before expected iPhone 18 launch

Apple has cut 147 jobs across its Silicon Valley operations, with software engineers among the hardest-hit groups, weeks before an anticipated September product launch cycle and a major leadership transition.

According to a Worker Adjustment and Retraining Notification (WARN) filing released this week, the layoffs span Apple's headquarters in Cupertino and two offices in Sunnyvale. The cuts come as the technology giant prepares for a new chapter under incoming chief executive John Ternus and gears up for what is expected to be a busy month of product announcements.

Layoffs concentrated in engineering teams

The WARN filing shows the workforce reductions were spread across three locations:

• 79 employees at One Apple Park Way in Cupertino
• 40 employees at 605 W. Maude Avenue in Sunnyvale
• 28 employees at 599 N. Mathilda Avenue in Sunnyvale

Software development engineers accounted for many of the cuts at Apple's Cupertino headquarters. At the Sunnyvale offices, engineers working on augmented and virtual reality products were among those most affected.

The layoffs are scheduled to take effect from 19 October, according to the filing.

Pressure on Vision Products Group

The workforce reduction follows reports of challenges within Apple's mixed reality business.

AppleInsider reported that layoffs within the company's Vision Products Group had been anticipated amid slower-than-expected momentum for Apple's premium virtual reality headset. The publication cited concerns around the commercial performance of the device since launch.

The headset, introduced as one of Apple's most ambitious product bets in recent years, entered the market with a starting price of $3,500. Interest in the product has faced scrutiny since its debut. SFGATE previously reported that a launch event at Apple's flagship San Francisco store in 2024 drew fewer customers than expected, with staff reportedly outnumbering attendees.

While Apple has not publicly linked the layoffs to product performance, the concentration of cuts in augmented and virtual reality teams has drawn attention to the future direction of its spatial computing efforts.

Leadership change adds to a pivotal moment

The job cuts arrive during one of the most significant leadership transitions in Apple's recent history.

After 15 years as chief executive, Tim Cook is set to step down next week. He will become executive chairman of Apple's board, while John Ternus, currently Senior Vice President of Hardware Engineering, takes over as CEO.

The transition places Ternus at the centre of Apple's upcoming launch season, traditionally one of the company's most important periods for revenue generation and product visibility.

Product launches expected in September

Although Apple has not formally announced its next event, Bloomberg reported that the company is expected to unveil its iPhone 18 lineup and its first foldable smartphone during a September event.

Additional announcements are expected to include:

• A new Mac Mini
• Updated Apple Watch technology
• The AirPods 5 range
• A release date for iOS 27

The launches will serve as an early test for Ternus as he begins his tenure as chief executive.

Questions remain around Apple's AI strategy

Beyond hardware, investors will be watching Apple's progress in artificial intelligence.

At its Worldwide Developers Conference earlier this year, the company unveiled a long-awaited AI-powered upgrade to Siri. The announcement introduced new capabilities for Apple's voice assistant, but investor reaction was muted.

According to CNBC, Apple's share price fell more than 3% on the day of the announcement, marking its sharpest single-day decline since February.

It remains unclear whether the next generation of iPhones will feature the company's latest Siri AI capabilities at launch.

A critical period ahead

Apple enters September balancing several priorities at once: workforce restructuring, a leadership handover, renewed AI expectations and one of the most closely watched product cycles in the technology industry.

For investors, employees and customers alike, the coming weeks will offer an early indication of how Apple plans to navigate its next phase of growth under new leadership while maintaining momentum across hardware, software and emerging technologies.