Apple gutted its Silicon Valley offices of 147 employees, mostly software engineers, weeks ahead of its highly anticipated product launch.
In a WARN filing released Tuesday, the company announced 79 layoffs at its main One Apple Park Way headquarters in Cupertino, 40 at its 605 W. Maude Ave. office in Sunnyvale, and 28 at its office at 599 N. Mathilda Ave. in Sunnyvale. Though software development engineers at its ring-shaped “spaceship” in Cupertino faced the most cuts, software engineers on augmented and virtual reality products took the biggest hits at its Sunnyvale locations.
AppleInsider reported Thursday that layoffs at Apple Vision Group were anticipated because the company’s expensive VR headset was not selling well since its launch. A 2024 event at its flagship San Francisco store featuring the $3,500 headset turned out underwhelming, with employees outnumbering customers.
Separations are expected to begin Oct. 19, according to the WARN.
The cuts come ahead of a big month for one of the most valuable companies in the world.
After 15 years in the chief executive office, Tim Cook will officially step down to make way for new CEO and current Senior Vice President of Hardware John Ternus next Tuesday. Cook will become executive chairman of Apple’s board of directors.
Ternus will kick off his tenure with new product launches throughout September, a month when it traditionally launches new products. Though an event hasn’t been scheduled yet, the company is expected to launch its first foldable smartphone and its iPhone 18 product line at a Sept. 9 event, according to Bloomberg. Other anticipated announcements include a new Mac Mini, new Apple Watch tech, a look at its AirPods 5 product line and a release date for iOS 27.
It’s unclear if any of the new phones will support Apple’s Siri AI, which the company announced at its Worldwide Developers Conference in June. Though the long-delayed revamp of Siri adds several new features, it initially arrived to a lukewarm reception from investors. The same day, Apple’s stock price dropped more than 3%, its worst day since February according to CNBC.
Apple did not respond to a request for comment.