Apple has laid off an unknown number of employees from its Vision Products Group, according to a source speaking to AppleInsider. The layoffs align with incoming CEO John Ternus's reported decision to put the VR headset category "on ice" and refocus efforts on smart glasses.

The Apple Vision Pro launched as a necessary product to develop visionOS in public, with the expectation of eventually producing full AR glasses dubbed Apple Glass. However, the high-priced headset faced challenges including a heavy design, limited developer support, and increasing component costs that forced price hikes.

While the VR team has shrunk, Apple is not abandoning the product line entirely. Restructuring has prioritized Siri AI and smart glasses development over the current headset iteration. Vision Pro development continues with future versions and smart glasses running visionOS still in progress.

The layoffs signal a cooling interest in spatial computing, but Apple's work on visionOS 27 and upcoming iterations suggests the company remains committed to the platform's long-term potential.