TLDR
- Apple is cutting over 200 jobs across its Siri, Vision Pro, and Intelligent Systems Experience teams.
- Around 100 roles were cut from the Vision Pro department, including gaming and immersive video teams.
- Another 100 jobs were cut from Siri and related software teams due to an AI-driven architectural change.
- Resources are being redirected toward AI-powered smart glasses, expected around 2027.
- Wall Street holds a Moderate Buy on AAPL, with an average price target of $336.63, implying 9% upside.
Apple is laying off more than 200 employees across its Siri, Vision Pro, and Intelligent Systems Experience groups, Bloomberg reported. The cuts reflect a broader internal reshuffle as the company realigns engineering resources toward AI development and upcoming hardware.
AAPL stock was down 0.63% at the time of reporting.
About 100 of the cuts came from the Vision Pro department. Apple is winding down its in-house gaming team for the headset and scaling back its immersive video group. Each episode of immersive video costs millions of dollars to produce, and with a limited user base, those costs have become hard to justify.
Apple confirmed the changes in a statement: “While we will create new roles as part of this change, it will also impact a limited number of existing roles. We are grateful to these team members for their contributions.”
The company said it is not abandoning visionOS or Vision Pro altogether. A new Vision Pro model is still rumored for 2028. Apple also plans to encourage third-party studios to take over immersive content production rather than doing it in-house.
Siri Gets an AI Overhaul
The remaining cuts came from Siri and software teams. Apple is moving to a new technical setup for an AI-powered version of Siri, and that shift requires a different set of engineering skills. Some existing roles no longer fit the new architecture, which is why they are being eliminated.
The Intelligent Systems Experience group, which builds AI features across Apple’s device lineup, is also being trimmed as part of this reorganization.
Affected employees can apply for other open positions within the company.
Smart Glasses Are the New Priority
Engineering resources freed up by these cuts are being redirected toward AI-enabled smart glasses, expected around 2027. The glasses are said to use cameras, Siri, and visual intelligence tools, replacing the power-intensive AR display found in the Vision Pro.
Apple is also approaching a leadership change. Tim Cook steps down as CEO on September 1 and will become Executive Chairman. John Ternus, currently Senior VP of Hardware Engineering, takes over as CEO.
Bank of America analyst Wamsi Mohan kept his Buy rating and $380 price target on AAPL ahead of the transition. He said Ternus is expected to continue Apple’s core strategy, with a focus on on-device AI, new products, and capital returns.
Wall Street overall holds a Moderate Buy consensus on AAPL, based on 16 Buys, 11 Holds, and four Sells over the past three months. The average price target stands at $336.63, implying around 9% upside from current levels.
A new Vision Pro model remains on the product roadmap for 2028, according to current reports.
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