Apple Cuts 200+ Jobs Across Vision Pro and Siri Teams as It Realigns Priorities

Apple has cut more than 200 jobs across its Siri, AI, and Vision Pro teams, according to multiple reports. The move reflects a broader strategic shift as the company scales back expensive headset projects and rebuilds its digital assistant around new AI infrastructure.

Roughly 100 of the eliminated positions are tied to the Vision Pro team, and another 100 hit groups working on Siri and the Intelligent Systems Experience team, the division focused on bringing generative AI features into Apple devices. Apple confirmed the cuts, saying it was "looking to evolve our business to deliver the best experiences for our users." The company added, "While we will create new roles as part of this change, it will also impact a limited number of existing roles." Apple also stated that affected employees can seek other positions within the company.

Vision Pro: Scaling Back Expensive Ambitions

The Vision Pro, which debuted two years ago at a price of $3,499 and weighs roughly 22 ounces, broke new technical ground but struggled to sustain sales after initial enthusiasm from early adopters. Apple reportedly reduced production at the beginning of 2026, following IDC's estimate of just 45,000 units sold in the fourth quarter. The company has never released official sales figures.

The job cuts hit the Vision Pro organization hard. Bloomberg's Mark Gurman reports that Apple is largely eliminating its Vision Pro gaming team, which had worked on developing the gaming ecosystem for the headset. Apple is also trimming its immersive video team, which produces original content for the platform. A single episode of immersive video can cost several million dollars to produce, a cost that has become difficult to justify given the headset's limited sales.

Apple is not abandoning the Vision Pro entirely. The company plans to create fewer videos internally while encouraging third-party developers to produce 3D content for the headset. It also insists the Vision Pro product and its operating system aren't going away, and it's reportedly still weighing a new model for as early as 2028. However, some reports have suggested that Apple's incoming CEO, John Ternus, may have axed plans for a Vision Pro 2 or a lightweight Vision Air, though these reports remain unconfirmed.

In the meantime, Apple's near-term focus appears to be shifting toward smart glasses. Reports indicate the company is planning a new range of smart glasses to compete with Meta's Ray-Ban lineup, possibly in 2027. Apple has not officially confirmed the release timeline, and the glasses reportedly won't support immersive video or advanced gaming.

Siri: Rebuilding for the AI Era

The cuts to the Siri team come as Apple works to rebuild its digital assistant, which has lagged behind competitors like OpenAI's ChatGPT and Google Gemini for years. Siri has historically responded with a basic web link instead of actually answering questions, particularly when handling follow-ups. Apple's revamped "Siri AI" in the public beta of iOS 18 has narrowed the functional gap by focusing on integration across its ecosystem.

Apple's decision to reshuffle the Siri team is reportedly due to pleas for the next version to be built on new technical infrastructure. This has prompted the company to eliminate a small number of existing roles, reallocate resources, and create new positions supporting the updated Siri. Apple engineers are reportedly using a completely different approach to build a next-generation digital assistant, which has led to a reduction in available positions in Siri-related divisions as the company seeks people with different skills.

Apple chalked up the changes to an attempt to realign priorities based on how customers were using its devices, and to allocate resources toward other products. The company said it is "realigning" teams rather than retreating, and that new roles will open even as others disappear.

Financial Context and Market Reaction

The job cuts come amid a period of strong financial performance for Apple, though the company faces rising costs and supply chain constraints. In its Q3 FY2026 results, Apple reported revenue of $109.4 billion, up 16.4% year-over-year, beating estimates of $108.65 billion. Adjusted EPS reached $1.91 against the Street's $1.89 forecast. iPhone revenue surged 21.7% year-over-year to $54.3 billion, and Mac generated $10.4 billion versus the $8.74 billion forecast. Services revenue increased to $30.7 billion from $27.4 billion but fell short of the $31.22 billion estimate. iPad revenue slipped to $6.2 billion from $6.6 billion.

Gross margin climbed to $54.8 billion, producing a 50.1% rate, helped by tariff refunds. Operating income rose to $35.7 billion, and net income increased to $29.8 billion. Despite these results, Apple's shares fell 7.35% in the following trading session due to supply constraints, particularly limited supplies of advanced semiconductor nodes. Apple guided for Q4 FY2026 revenue growth of 9% to 11%, down from June's 16% pace, and expects a 2.5-point FX headwind and supply constraints to weigh on iPhone, Mac, and iPad. The company expects Q4 gross margin of 47% to 48%.

Analysts expect Q4 FY2026 EPS to grow 7% year-over-year to $1.98, with full-year FY2026 EPS estimates at $8.76 and FY2027 at $9.52. Bank of America analyst Wamsi Mohan reiterated his "Buy" rating and kept his $380 price target unchanged. Wall Street gives AAPL stock an overall "Moderate Buy" rating, with an average price target of $328.62, representing potential upside of 5.7%. The Street-high target of $400 comes from Rothschild Redburn analyst Timm Schulze Melander, pointing to a gain of 28.7% from current levels. Apple's market cap stands at $4.52 trillion, and the stock has gained 36.9% over the last 52 weeks. The company has paid a dividend that has grown for 13 consecutive years, with a current yield of 0.35%.