Apple announced layoffs of 147 employees across Silicon Valley locations, primarily software engineers working on augmented reality projects, marking a significant retreat from the company’s troubled Vision Pro headset initiative just weeks before its highly anticipated iPhone 18 launch.
Mass Layoffs Signal Strategic Shift
According to a WARN filing released Tuesday, the cuts will eliminate 79 positions at Apple’s Cupertino headquarters, 40 employees at one Sunnyvale office, and 28 workers at a second Sunnyvale location. The terminations, scheduled to begin October 19, predominantly affect software engineers who developed augmented and virtual reality products. The Sunnyvale offices bore the brunt of the reductions, with substantial losses among teams dedicated to spatial computing technology.
The layoffs represent Apple’s latest acknowledgment that its expensive venture into virtual reality has failed to capture consumer interest. The Vision Pro headset, unveiled in 2024 with massive fanfare as the company’s biggest new product category in years, carried a staggering price tag of $3,499 that kept mainstream buyers away.
Vision Pro Struggles From Launch
The headset faced immediate challenges when it launched in San Francisco in February 2024. Reports from the flagship store opening indicated Apple employees and media representatives appeared to outnumber actual customers, foreshadowing the product’s market struggles. The device’s combination of premium pricing, substantial weight, and limited app selection created barriers too significant for widespread adoption. Apple attempted recovery with an updated M5 Vision Pro model, but the refresh failed to generate the demand executives had projected.
MacRumors previously reported that Apple abandoned plans for a direct Vision Pro successor, shifting focus toward lighter smart glasses that could deliver similar technology without requiring consumers to wear bulky headsets. The company also eliminated positions connected to gaming and immersive video content development for the Vision Pro platform.
iPhone 18 Launch Looms
The workforce reduction comes at a critical juncture for Apple, occurring just weeks before the company plans to unveil its next iPhone generation. The anticipated iPhone 18 lineup will include Apple’s first foldable iPhone model, representing a potential pivot back to the mobile device category that built the company’s dominance. The timing suggests Apple is reallocating resources away from struggling product lines toward proven revenue generators as it prepares for a major product announcement that could define its fiscal trajectory.