Apple CEO John Ternus is restructuring the company to accelerate product development and introduce new devices more frequently, according to Bloomberg's Mark Gurman. Ternus wants Apple to "broaden its range of devices and create a leaner organization with a greater focus on engineering." One proposal is to rely less on traditional spring and fall release cycles, launching products throughout the year. Ternus has indicated Apple must become "more experimental" to compete in the AI era.

Other plans include eliminating middle-management positions to reduce hierarchy. Ternus believes "Apple should hire fewer people, ask more of its existing engineers, and reduce organizational bloat." He reportedly showed a slide on annual headcount growth, arguing the company should accomplish more with fewer employees. To cut costs, early planning meetings for 2027 have seen reduced budget increases, flat staffing, and lower marketing spending.

Gurman cautioned the changes will be challenging and could take years. Dismissals of directors and engineering program managers have occurred in the past two weeks, given just weeks to find other roles or be laid off. Cutbacks have targeted teams for Siri, Vision Pro, AI software engineering, and Fitness+. Some employees expect further layoffs later this year and early next year. Managers report pressure to move faster, with more demanding hands-on work and shorter timelines.