Apple Inc. announced on Monday (November 24th) that in order to enhance customer engagement, the company has cut some positions within its sales team, emphasizing that only a minority of positions are affected. This move is considered rare for Apple.
According to a spokesperson for Apple Inc. who spoke to Reuters, the company is still actively hiring, and employees impacted by the layoffs can apply for new positions within the company.
Bloomberg reported that Apple has trimmed tens of sales positions to streamline its approach in providing products to businesses, schools, and government entities.
Sources familiar with the matter informed Bloomberg that management had notified affected employees in the past few weeks. The layoffs have impacted the entire sales department, with some teams facing more significant consequences. However, the company did not disclose the exact number of positions involved.
Reportedly, the affected positions include client managers responsible for large enterprises, schools, and government agencies, as well as staff operating Apple Briefing Centers. These briefing centers provide support for institutional meetings and product demonstrations for potential major clients.
The layoffs at Apple have come as a surprise to affected employees, especially given the company’s rapid revenue growth in recent years. The company anticipates achieving sales of nearly $140 billion in the fourth quarter, breaking previous records.
Among those laid off were long-serving managers and employees with 20 or 30 years of experience at Apple. A key target of the layoffs was the sales team handling government business, collaborating with government agencies including the U.S. Department of Defense and the Department of Justice. The team’s situation had already been challenging due to the 43-day government shutdown and budget cuts implemented by the Department of Government Efficiency (DOGE) to reduce expenses.
Internally, the layoffs are described as one of the measures to streamline the sales team and eliminate overlapping responsibilities. However, some affected employees told Bloomberg that the layoffs were intended to shift more sales operations to third-party vendors. They pointed out that some businesses prefer working with these indirect sales partners, a shift that also helps Apple reduce internal costs like salary expenses.
Compared to many of its tech counterparts, Apple is less reliant on layoffs. CEO Tim Cook had previously stated that layoffs are a “last resort.” However, the company has carried out layoffs in the past.
In recent weeks, several companies, including Verizon, Synopsys, and IBM, have also announced layoffs.