Apple’s new CEO John Ternus intends to accelerate device development, move away from strictly tying announcements to the spring and autumn, and reduce the number of management positions.

Ternus took the helm of the company on September 1, 2026, succeeding Tim Cook, who assumed the role of executive chairman of the board after 15 years of leadership. Prior to his appointment, the new Apple head had worked at the company for over 25 years, including a tenure leading hardware engineering.

Apple wants to produce more devices

One of Ternus’s main proposals concerns revising the traditional presentation schedule. Currently, Apple’s major hardware announcements are focused primarily around spring and autumn events. The new executive wants to distribute device releases throughout the year, shorten development timelines, and expand the product lineup.

iPhone Duo John Ternus

According to Bloomberg, Ternus believes that in the era of artificial intelligence, Apple needs to bring products to market faster and experiment more actively with new device categories.

However, the changes are still in the discussion stage. Apple’s established development processes have been shaped over decades, so restructuring them could take several years.

Reduction of management positions

The second area of reorganization involves reducing the number of middle management layers between engineers and senior leadership. Ternus advocates for a leaner structure, limiting hiring, and increasing the efficiency of existing teams.

The first personnel changes have already begun. Over the past two weeks, Apple’s hardware division has notified several engineering program managers (EPM) of their termination, including approximately six directors. These specialists have played an important role in product development for decades, coordinating the work of various teams and overseeing project timelines.

Employees affected by the layoffs were given several weeks to find other positions within Apple. Those who fail to transfer to another department will leave the company by the end of the year.

Changes have also affected other areas. Apple has downsized its Siri, Vision Pro, and AI software development teams, as well as some Fitness+ staff members who worked on audio workouts.

This summer, the company considered laying off approximately 5,000 AppleCare support specialists. It was expected that AI agents could handle some of their responsibilities via the website and phone support. However, the implementation of this plan has been paused for now.

Cost savings and new revenue streams

The reorganization also affects Apple’s financial strategy. During preliminary budget planning for 2027, individual divisions have already been restricted from increasing expenses, with plans to maintain current staffing levels and reduce marketing costs.

Tim Cook and John Ternus

In parallel, Ternus, along with head of services Eddy Cue and CFO Kevan Parekh, is exploring new ways to monetize existing products and the possibility of launching additional services.

The reason for the strategy revision was partly due to a slowdown in the growth of the services business. In the June quarter, its revenue declined relative to the previous quarter for the first time since 2022, although it continued to grow year-over-year and set a record for the corresponding period.

According to Bloomberg sources, there is a growing sense of pressure within Apple, with development teams being required to release more products in less time. Some employees expect layoffs to continue through the end of 2026 and into early 2027.

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