When business is good, companies tend to hire more people in order to meet the demand. However, when business is bad or slow, that’s when companies conduct layoffs. But are things going badly at Apple, so much so that the company is conducting layoffs across different sales roles? That’s what’s allegedly happening, according to a report from Bloomberg.
Apple conducts layoffs across its sales organization
According to the report, Apple has eliminated roles primarily within its enterprise sales division. The affected positions include account managers handling corporate, education, and government clients. It also includes employees at Apple’s briefing centers, where the company hosts high-level product demonstrations for major customers.
However, this shouldn’t be interpreted as Apple doing badly. Instead, Apple frames these layoffs at its sales division as a restructuring to streamline operations and eliminate overlapping responsibilities. The company says it’s still hiring in other areas and has encouraged affected staff to apply for open internal positions. Some employees have been given deadlines to find new roles within Apple before receiving their severance packages.
According to some affected employees, they believe the company is shifting more enterprise business to third-party resellers. This means potentially reduced salary and support costs. The government sales team appears to be hit particularly hard. The division was already struggling with federal budget constraints and a prolonged US government shutdown that slowed the closing of deals.
A rare move for Apple
Apple has built a reputation for treating layoffs as an absolute last resort. While competitors spent 2023 and 2024 cutting thousands of positions, Apple largely avoided massive workforce reductions. This is versus other tech giants such as Meta, Amazon, Microsoft, and Alphabet. These companies slashed thousands of jobs during recent downturns.
What makes these Apple sales layoffs interesting and kind of weird is the timing. The company recently reported approximately $140 billion in revenue for the December quarter. Like we said, companies tend to cut jobs when things are bad. But cutting jobs during strong financial performance sends a different message.
Perhaps this is Apple’s way of diverting its resources to other investments, like in AI, where it appears to be currently struggling.
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