Apple cuts 200 Vision Pro jobs as Ternus takes CEO helm

Apple is cutting roughly 200 Vision Pro and Siri AI roles as John Ternus takes over as CEO on September 1, inheriting a product that sold just 45,000 units last quarter.

"Few people understand what it takes to build products that change the world the way John does," Cook wrote in a memo to employees on his final day as CEO, endorsing Ternus as he transitions to executive chairman.

A California WARN filing shows 147 layoffs across three Silicon Valley locations — 79 at One Apple Park Way in Cupertino and 68 across two Sunnyvale addresses — with separations beginning October 19. Roughly 60 additional Vision Pro and VR roles were cut separately, and broader estimates suggest about 100 Vision roles and 100 Siri/AI positions eliminated, though Apple has not confirmed the full figure.

The cuts arrive two weeks before Apple's September 9 launch event, where Ternus's debut includes the iPhone 18 Pro, iPhone 18 Pro Max, and Apple's first foldable iPhone. The Vision Pro's failure — IDC estimates just 45,000 units sold in its last reported quarter, and Luxshare halted production in early 2025 — leaves Ternus to decide whether spatial computing remains a priority or becomes a footnote in Apple's hardware roadmap.

The $3,499 Headset That Never Found Its Audience

The Vision Pro launched as spatial computing's defining moment. The market delivered a different verdict. At $3,499, with no clear use case that resonated with everyday life, the headset never found its audience. IDC's 45,000-unit quarterly estimate tells that story plainly — and the San Francisco store anecdote seals it. Even Apple cannot force a product into the world if nobody knows why they need it.

The comparison with Meta's Quest line is instructive. Meta has shipped tens of millions of Quest headsets at price points between $299 and $499, targeting gaming and social use cases. Apple's $3,499 price tag positioned the Vision Pro as a professional and developer tool, but the developer ecosystem never materialized at the scale needed to justify the cost. Some affected Vision engineers are reportedly being offered transfers to iPhone, iPad, and automotive teams, per Brief Asia reporting. That suggests Apple is not abandoning the technology entirely but reallocating talent toward products with proven demand.

The Siri AI cuts are equally telling. Apple has lagged Google and Microsoft in the generative AI race, and trimming 100 Siri/AI roles suggests the company is consolidating its AI efforts rather than expanding them. This comes as Samsung ships Galaxy AI features across its entire device lineup and Google integrates Gemini into Android at the system level.

What Ternus Inherits

Ternus, who has worked at Apple for more than two decades, has played a key role in developing several generations of the iPhone, iPad, and Mac. His appointment was announced in April following a succession planning process approved unanimously by the board. Cook publicly said there is "no better person" than Ternus to lead Apple — a succession framed as long-planned, not reactive.

The transition comes as Apple's stock slips on uncertainty about the leadership change. Cook's 15-year tenure saw Apple grow significantly across hardware, software, and services, expanding products such as the Apple Watch and AirPods while strengthening its services business. His leadership also saw Apple reach historic milestones in market value and increase its focus on privacy, sustainability, and supply-chain diversification.

For investors, the question is whether Ternus's hardware engineering background can translate into the operational discipline Cook brought. Cook joined Apple in 1998 as senior vice president for worldwide operations, reshaping the manufacturing model and reducing inventory from months to days. Ternus's challenge is different: he must prove Apple can still ship products that define categories, not just iterate on existing ones.

The September 9 event will be the first test. If the foldable iPhone and iPhone 18 Pro line deliver, Ternus's hardware-first approach will look prescient. If they stumble, the Vision Pro cuts will look like the first of many.

This article is for informational purposes only and does not constitute investment advice.