New Apple CEO John Ternus is reportedly planning layoffs as memory chip costs rise
Apple CEO John Ternus is implementing targeted layoffs and canceling early-stage projects to offset soaring memory chip costs. Reductions include middle management and engineering project managers as DRAM and NAND prices rise due to AI server demand. Analysts estimate memory now exceeds one third of the iPhone 18 Pro bill of materials. Ternus is simultaneously pushing for an engineering-led overhaul to make the company run leaner and launch products more frequently. These defensive cuts come as high-margin services revenue shows signs of softening, compounding pressure on profit margins.
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- ✓ CEO John Ternus is planning layoffs to streamline Apple operations.
- ✓ Apple is canceling early-stage projects and reviewing budgets.
- ✓ Ternus intends to make the company run faster and leaner.
- ✓ Apple plans to launch products more frequently.
What changed
John Ternus is executing targeted workforce reductions and project cancellations to combat memory chip inflation.
Live updates
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Apple CEO John Ternus Initiates Layoffs Amid Rising Memory Costs
Apple CEO John Ternus is implementing targeted layoffs and canceling early-stage projects to offset soaring memory chip costs. Reductions include middle management and engineering project managers as DRAM and NAND prices rise due to AI server demand. Analysts estimate memory now exceeds one third of the iPhone 18 Pro bill of materials. Ternus is simultaneously pushing for an engineering-led overhaul to make the company run leaner and launch products more frequently. These defensive cuts come as high-margin services revenue shows signs of softening, compounding pressure on profit margins.
Why it matters
Former CEO Tim Cook described the current surge in memory costs as a once-in-a-century flood. Apple is attempting to diversify its supply chain by testing chips from China's CXMT. The company risks becoming a lower-priority customer in a semiconductor market reshaped by AI infrastructure.
What is confirmed
- CEO John Ternus is planning layoffs to streamline Apple operations.
- Apple is canceling early-stage projects and reviewing budgets.
- Ternus intends to make the company run faster and leaner.
- Apple plans to launch products more frequently.
Still unconfirmed
- Memory costs now constitute over a third of the iPhone 18 Pro's bill of materials.
- Apple is testing chips from China's CXMT to diversify its supply chain.
- Apple intends to keep headcount flat in 2027.
- Services revenue is showing signs of softening.
What to watch next
- Official confirmation of total headcount reductions
- Updates on the iPhone 18 Pro bill of materials
- Results of CXMT chip testing
confidence 80%Sources used for this update (18)
- economictimes.indiatimes.com — Mark Zuckerberg
- Bloomberg.com — Apple’s New CEO Seeks to Make Company Run Faster and Leaner
- theverge.com — Apple’s new CEO could change when it launches phones and laptops
- Reuters — Apple's Ternus eyes engineering-led overhaul, Bloomberg News reports
- MacRumors — Apple Planning to Launch Products Faster and More Often
- finance.yahoo.com — New Apple CEO John Ternus is reportedly planning layoffs as memory chip costs rise
- Yahoo Finance Singapore — New Apple CEO John Ternus is reportedly planning layoffs as costs rise
- Gizmodo — Apple’s New CEO Looking to Cut Jobs and Push for Faster Product Launches
- appleinsider.com — Small layoffs and budget cuts are hitting Apple, with more ...
- news24online.com — Apple likely to announce another round of layoffs under John ...
- www.htx.com — Apple's New CEO Plans Layoffs Due to Rising Memory Chip Costs
- finance.yahoo.com — New Apple CEO John Ternus is reportedly planning layoffs as ...
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