Apple (AAPL) Stock: Layoffs Hit Sales Division Despite Posting a Strong Quarter

TLDR

• Apple eliminated dozens of positions in its enterprise, education, and government sales divisions
• Affected employees have until January 20, 2025 to find new internal roles or accept severance packages
• The layoffs included account managers and briefing center staff, with some employees having 20-30 years of tenure
• A government sales team working with Defense and Justice departments was particularly impacted
• Apple maintains it’s continuing to hire and described the cuts as affecting a “small number of roles”

Apple has cut dozens of positions across its sales organization. The reductions mark an uncommon workforce move for the iPhone maker.

The company notified affected workers over recent weeks. Sales teams serving businesses, schools, and government agencies saw the most impact.

Apple Inc., AAPL

Eliminated positions included account managers handling major institutional clients. Staff running Apple’s briefing centers for product demonstrations also received layoff notices.

An Apple spokesperson confirmed the restructuring Monday. The company characterized the changes as efforts to improve customer connections while affecting a “small number of roles.”

Laid-off employees can apply for other open positions. Apple stated it continues hiring across various departments.

Workers have until January 20 to secure internal transfers. Those unable to find new roles will receive severance packages.

Government Division Hit Hard

The government sales team faced heavy cuts. This division manages relationships with agencies including the Defense Department and Justice Department.

These teams already operated under pressure. The 43-day government shutdown created operational challenges.

Department of Government Efficiency spending reductions added further strain. The DOGE-imposed cutbacks affected government purchasing patterns.

Some employees believe the changes push sales toward third-party resellers. Apple refers to these partners as “the channel.”

Certain organizations prefer indirect sellers. This approach reduces Apple’s internal salary costs.

The layoffs affected veteran employees. Some workers had spent two or three decades with the company.

Strong Sales Performance Continues

The cuts arrive during Apple’s strongest revenue period in years. The company projects nearly $140 billion in December quarter sales.

This figure would set a new company record. Revenue growth has accelerated to multi-year highs.

Apple plans to launch a budget laptop in early 2026. The device targets business and education markets.

The sales division reports to CEO Tim Cook. Vice President Mike Fenger leads the organization.

Vivek Thakkar expanded his role earlier this year. He now manages all enterprise and education sales operations.

Similar cuts occurred in Australia and New Zealand weeks earlier. About 20 positions were eliminated in those markets.

Tech Industry Layoff Pattern

Apple avoids layoffs more than most tech companies. Cook has called job cuts a “last resort” approach.

The company structures reductions to avoid WARN notice requirements. These federal notifications apply to larger workforce actions.

Apple cut positions in 2024 following project cancellations. The abandoned self-driving car initiative resulted in job losses.

Development teams for in-house display technology also saw cuts. Some AI teams and services divisions experienced reductions.

Other tech firms continue larger-scale layoffs. Amazon announced over 14,000 job cuts this month.

Meta eliminated several hundred AI division roles recently. Industry-wide workforce reductions remain more common than Apple’s targeted approach.

Apple advertised open sales positions on its careers website. The company encouraged affected workers to apply for available roles.

The post Apple (AAPL) Stock: Layoffs Hit Sales Division Despite Posting a Strong Quarter appeared first on Blockonomi.