Apple Restructures Sales Teams Amidst Record Revenue, Some Jobs Cut

Apple Streamlines Sales Force Despite Booming Revenue

Sources familiar with the matter state that affected employees were notified by management over the past few weeks. The cuts span across the sales organization, with some teams experiencing a more significant impact than others. However, the company has not disclosed the precise number of positions affected.

Impacted roles include account managers serving large corporations, educational institutions, and government agencies, as well as staff responsible for operating Apple briefing centers, hosting institutional meetings, and conducting product demonstrations for prospective high-value clients.

Apple confirmed on Monday that it is restructuring the department but did not provide specific details. The Cupertino, California-based company stated: "To better engage with our customers, we’re making changes to our sales teams that will impact a small number of roles. We are continuing to hire and impacted employees will have the opportunity to apply for other roles at Apple."

Surprise Amidst Growth

The layoffs, considered uncommon at Apple, have surprised affected employees. Notably, this comes as the company's revenue is growing at its fastest pace in years. Apple projects nearly $140 billion in sales for the December quarter, a historic high.

Apple is also reportedly planning to launch a low-end laptop in early next year to further expand its reach into the enterprise and education markets.

The latest cuts come weeks after approximately 20 positions were eliminated from the sales teams in Australia and New Zealand.

Laid-off employees have until January 20th to seek new roles within the company; otherwise, they will be formally terminated and receive severance packages. Apple has posted sales-related positions on its job board and informed laid-off employees that they can reapply. The company has internally framed the layoffs as a measure to "streamline the sales force and eliminate redundancies."

Shift Towards Indirect Sales Channels

However, some departing employees suggest that the move is actually driven by a push to shift more sales work to third-party resellers (what Apple calls "channels"). Some institutions prefer to work with these indirect sellers, and the shift helps Apple reduce internal costs such as salaries.

The layoffs have affected some long-tenured managers, including individuals who have worked at Apple for 20 to 30 years. Teams affected primarily include the government sales team, responsible for working with agencies such as the U.S. Department of Defense and the Department of Justice. This team was already facing challenges following the 43-day U.S. government shutdown and budget cuts from the Department of Government Efficiency (DOGE).

Apple's sales division reports directly to CEO Tim Cook and is headed by long-time Vice President Mike Fenger. His deputy, Vivek Thakkar, was given greater responsibility earlier this year and now has full oversight of enterprise and education sales.

Compared to many of its tech peers, Apple relies less on layoffs. Cook has stated that layoffs are a "last resort." However, Apple does make occasional workforce adjustments. Typically, the company reduces positions in a manner that does not trigger the requirements of the U.S. Worker Adjustment and Retraining Notification (WARN) Act.

In 2024, Apple conducted unusually large layoffs due to product cancellations and economic instability, including the long-developed but terminated autonomous vehicle project, as well as its in-house display team. Some AI-related teams and service departments were also affected.

Across the broader tech industry, layoffs remain prevalent. Earlier this month, Amazon announced over 14,400 job cuts, and Meta Platforms recently trimmed hundreds of positions in its AI division.