[News] Apple Implements Unexpected Layoffs, Reportedly Linked to Third-Party Sales Shift

Tech layoffs are still spreading, and now even Apple has unexpectedly joined the wave with fresh job cuts. According to Bloomberg, Apple has eliminated dozens of sales roles in a bid to streamline the way it offers products to businesses, schools and governments. The company didn’t tell employees how many roles were involved.

Apple confirmed on Monday that it is reorganizing the division, though it did not provide details, according to Bloomberg. The cuts span roles such as account managers serving large enterprises, schools, and government clients, as well as staff who run Apple’s briefing centers, where the company hosts institutional meetings and product demonstrations for major prospective customers.

Employees affected by the cuts have until Jan. 20 to find another role within Apple; otherwise, their employment will end with a severance package. The company has posted new sales openings on its jobs site and told displaced workers they are eligible to apply.

It’s rare for Apple to implement cuts across an entire organization, making the move stand out even more given that the company’s revenue is currently growing at its fastest pace in years. As the report highlights, Apple is on track to bring in nearly $140 billion in sales for the December quarter, surpassing its previous record. These latest reductions come after Apple quietly eliminated around 20 positions in its sales teams in Australia and New Zealand several weeks earlier, the report adds.

Reseller Strategy Potentially Behind the Cuts

Sources cited in the report say the restructuring stems from Apple’s effort to route more sales through third-party retailers. Some customers prefer working with these indirect partners, and the shift also allows Apple to lower internal costs such as salaries.

The report adds that the cuts affected several long-serving employees, including managers and staff with 20 to 30 years at the company. One of the most impacted groups was the government sales team, which oversees accounts for agencies including the U.S. Defense Department and the Justice Department.

Job Reductions Accelerate Across Big Tech

Apple isn’t the only major tech firm cutting jobs. According to CNBC, Amazon last month launched the largest layoffs in its 31-year history, cutting more than 14,000 roles across its sprawling operations, with engineers hit the hardest.

CNBC also notes that IBM said in early November it will eliminate thousands of jobs in the fourth quarter, a low single-digit share of its global workforce. Meanwhile, as noted by Reuters, major EDA company Synopsys is likewise planning to trim about 10% of its staff, roughly 2,000 employees, as it shifts investment toward new growth areas.

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(Photo credit: Apple)