❯ Apple’s new CEO John Ternus begins a shake-up, cutting management layers and speeding up launches

Moving within weeksAccording to Bloomberg’s Mark Gurman, Apple’s new CEO John Ternus is overhauling the company to run faster and leaner with a greater focus on engineering, and to launch products more often, possibly year-round instead of in concentrated spring and fall events. Apple has laid off a batch of engineering program managers in its hardware division, including about six directors, and employees expect more cuts.

An engineer in chargeTernus long ran Apple’s hardware engineering and has been CEO for only a few weeks. The core of the overhaul is to cut layers between engineers and top executives so product development takes fewer detours. Gurman also reported that Apple had planned in recent months to lay off about 5,000 AppleCare customer service staff and replace them with AI agents, but the plan has been put on hold.

Speeding up after falling behind in AIApple is widely seen as trailing Google, OpenAI and Meta in generative AI, and Siri’s upgrade has been repeatedly delayed. A faster launch cadence and fewer layers aim to shorten the path from R&D to market. Middle managers are first in line, and denser launches will also force the supply chain to adjust its stocking rhythm.

▪ SIGNALApple’s problem has never been a lack of money or talent but slowness; by cutting layers rather than products first, the new CEO signals he thinks the drag lies in the organization itself.