Apple is laying off 147 employees, predominantly software engineers working on augmented reality (AR) and virtual reality (VR) products, in its Silicon Valley offices. The job cuts, scheduled to begin October 19, impact workers across three company locations, including 79 at its Cupertino headquarters and others in Sunnyvale. These layoffs signify a shift in strategy for Apple's ambitious spatial computing initiatives.
The company's expensive push into the spatial computing sector, exemplified by the $3,499 Vision Pro headset launched in 2024, has struggled to gain mainstream traction. Reports following the headset's February 2024 launch in San Francisco indicated that customers were outnumbered by employees and media representatives at Apple's flagship store. Challenges cited include the high price, considerable weight, and a limited selection of apps and experiences.
Despite efforts to revitalize interest with an updated M5 Vision Pro, the product has not generated the anticipated demand. Consequently, Apple has reportedly scaled back plans for a direct successor to the current Vision Pro. Instead, the company is believed to be refocusing on developing lighter smart glasses that could potentially bring spatial computing technology to a broader audience.
The recent layoffs appear to reflect this strategic pivot, with the Vision Products Group reportedly reducing staff on certain projects. Cuts have also affected positions related to gaming and immersive video content development for the Vision Pro, areas where Apple had invested heavily to showcase the headset's capabilities.
These developments occur as Apple prepares for its annual September product event, where it is expected to announce its next generation of iPhones, including the highly anticipated iPhone 18 lineup and its first foldable iPhone. This event is traditionally a significant moment on Apple's calendar.
The layoffs also coincide with a major leadership transition. CEO Tim Cook, who has led the company for 15 years, is reportedly expected to step down, with current Senior Vice President of Hardware John Ternus anticipated to succeed him.
Apple has not responded to requests for comment regarding the latest layoffs.