Apple to carry out first layoffs under CEO John Ternus's leadership

Apple is reportedly set to conduct its first mass layoffs under the leadership of their new CEO, John Ternus.

As reported by Phone Arena on Sunday (20/9) local time, Apple is not a company that frequently engages in mass redundancies; however, this step appears to be taken to improve the company’s financial health.

News of the first layoffs under the new CEO’s leadership was reported by Mark Gurman of Bloomberg via his Power On newsletter.

According to unnamed internal sources, the dismissals are targeting employees within the Apple Fitness+ division. The Apple Fitness+ service itself does not generate significant revenue for the company. After years of existence, the service has failed to grow as much as other digital or physical solutions offered by Apple.

Last year, Gurman reported that the Cupertino-based company was attempting to tighten the management of Apple Fitness+. In addition to attempting to enhance the service through new features, such as AI-generated voiceover support for workout videos, layoffs appear to be an unavoidable path.

Gurman believes that Apple will not eliminate the service entirely to avoid negative backlash. However, the company may implement cost reductions for the development of the service in the near future.

This wave of layoffs is the first to occur under the leadership of new CEO John Ternus. However, this does not necessarily mean that layoffs will become more common at the Apple-branded company. This is because layoffs in less profitable divisions were also carried out under the leadership of former CEO Tim Cook, specifically within the Apple Vision Pro division. Therefore, the current layoffs in Apple Fitness+ appear to be a continuation of corporate measures that had been decided previously.