Apple Implements Rare Layoff by Reducing Jobs Across Its Global Sales Organization

Apple Inc. has recently cut dozens of jobs within its sales organization, a move that is rare for the tech giant. This layoff affects account managers who serve major businesses, schools, and government agencies, as well as staff operating Apple’s briefing centers for institutional meetings.

Management informed the affected employees over the past few weeks but did not disclose the exact number of roles eliminated. Apple confirmed on Monday that it is restructuring its sales division to connect with more customers, impacting a small number of positions.

The layoffs come despite Apple’s strong revenue growth, with the company expected to generate nearly $140 billion in sales for the December quarter. This indicates that the cuts are part of a strategic reorganization rather than a response to financial distress.

Affected teams include a government sales group working with agencies such as the US Defense and Justice Departments. This team had already faced challenges from recent government shutdowns and budget cuts imposed by the Department of Government Efficiency.

Internally, Apple describes the layoff as a streamlining effort to remove overlapping responsibilities. Some employees believe the move also aims to shift more sales to third-party resellers, known as the channel, preferred by some organizations and more cost-effective for Apple.

Employees laid off have until January 20 to find another position within the company. Apple is actively hiring for sales roles and encourages displaced workers to apply for these openings, providing severance packages if they cannot secure new roles.

This workforce reduction follows earlier cuts of about 20 sales roles in Australia and New Zealand. Apple typically avoids large-scale layoffs and aims to keep reductions below thresholds requiring formal government notifications.

Apple’s sales unit reports directly to CEO Tim Cook and is overseen by vice president Mike Fenger. Earlier this year, Vivek Thakkar took on expanded responsibilities managing enterprise and education sales.

While layoffs have been limited compared to other tech companies, Apple cut a notable number of employees this year due to product cancellations and economic uncertainty. These included workers from the self-driving car project, in-house screen development, AI-related teams, and parts of the services division.

In contrast, broader tech industry layoffs remain extensive, with companies like Amazon and Meta recently announcing major job cuts. Apple’s sales organization restructuring highlights how even leading tech firms adjust workforce strategies to optimize operations and align with changing market demands.

Read more at: finance.yahoo.com
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