Apple restructures global sales division with rare job cuts

UNITED STATES: Apple has eliminated dozens of positions in its global sales organisation, marking one of the company’s rare workforce reductions.

According to a Bloomberg report, employees were notified over recent weeks by management familiar with the decision.

The cuts spanned multiple teams supporting businesses, schools and government agencies, and included staff who operated Apple’s institutional briefing centres.

Apple confirmed the restructuring on 24 November, stating only that the changes affect a small number of roles.

A company spokesperson said Apple aims “to connect with even more customers” and noted that hiring continues.

Affected employees were told they may apply for newly advertised positions across the organisation.

The decision surprised many staff because broad layoffs are uncommon at Apple.

The moves are notable given that revenue growth is reportedly at its strongest in years, with expected December-quarter sales of nearly US$140 billion, according to Bloomberg.

The restructuring follows smaller cuts several weeks earlier, which removed about 20 roles in Australia and New Zealand.

The current round includes account managers and long-tenured employees with 20 or even 30 years at the company.

Those who lost their jobs have until 20 January 2026 to secure another position internally.

Failing that, they will receive a severance package, Bloomberg reported.

Internally, Apple has positioned the layoffs as an attempt to streamline its sales workforce and eliminate overlapping functions.

However, some employees told Bloomberg the change reflects a larger shift toward using third-party resellers, known internally as the “channel”.

These resellers often handle major institutional clients and can lower Apple’s internal costs, including salaries.

Some organisations also prefer working with indirect sellers, according to staff cited in the report.

One significant focus of the cuts was a government sales team working with agencies such as the Defence Department and Justice Department.

The team was already facing challenges after a 43-day government shutdown and spending cuts from the Department of Government Efficiency.

Apple's sales division reports directly to chief executive Tim Cook and is overseen by vice-president Mike Fenger.

Vivek Thakkar, Fenger’s deputy, took on wider responsibilities earlier in 2025 and now leads all enterprise and education sales.

Apple historically avoids layoffs, with Cook describing them as a “last resort”.

But in 2024, the company cut an unusually large number of roles tied to product cancellations and a slow economy.

Those reductions affected the discontinued self-driving car project, in-house screen development teams, some artificial intelligence groups and parts of the services division.

The current cuts show that restructuring remains ongoing even as the company prepares a new low-end laptop for early 2026.

That device is expected to help Apple reach new business and education customers, according to Bloomberg’s reporting.

Despite the turbulence, the company continues to advertise sales positions.

Layoffs remain widespread across the technology sector.

Amazon recently announced plans to cut more than 14,000 employees, while Meta Platforms removed several hundred roles in its artificial intelligence organisation earlier in November.