Massive layoffs at Apple hit business and education teams

Apple has begun shifting to working through third-party resellers and has laid off dozens of sales staff.

Apple has cut dozens of employees responsible for selling devices to schools, government agencies and corporate customers. According to Bloomberg, the employees started receiving notices two weeks ago. The company is revamping sales and will use third-party partners more often.

Apple’s sales force is being restructured and will use third-party partners more often.

Apple has slimmed down teams working with education, government agencies and businessesThe cuts affected account managers who led Apple’s commercial customers, schools buying tech, and government agencies. Employees who conducted product demonstrations for major customers and set up meetings in special briefing centers were laid off.

Account managers who led Apple’s commercial customers, schools that purchase technology, and government agencies were also laid off.

Some divisions were hit noticeably harder than others. Apple did not disclose to employees the full list of positions to be cut. The changes were across the entire sales organization under CEO Tim Cook. Vivek Thakkar is in charge of sales in the enterprise and education segments.

And Vivek Thakkar is now in charge of sales in the enterprise and education segments.

Many employees didn’t expect the layoffs

A spokesperson for Apple confirmed the role realignment: “To reach more customers, we are making changes to the sales team that affect a small number of positions. We are continuing to hire, and employees can apply for new roles.”

The layoffs came as a surprise amid a strong fiscal year, with Apple expecting to end the December quarter with record revenue of about $140 billion.

A few weeks earlier, Apple laid off 20 employees in Australia and New Zealand. The decision seems atypical amid reports of the development of a low-cost laptop aimed, among other things, at the education and corporate segments – the same areas where Apple has cut some salespeople.

Employees have until Jan. 20 to find a new position at Apple. Those who don’t make it in time will be laid off and receive severance pay. Among those affected are employees with 20 to 30 years of service.

The company will move more actively to work through third-party partners

The team that interacts with U.S. government agencies, including the U.S. Department of Defense and the Department of Justice, has been noticeably affected. Its work was previously hampered by the 43-day government shutdown and restrictions initiated by the Department of Government Efficiency (DOGE).

The team’s work was previously hampered by a 43-day government shutdown and restrictions initiated by the Department of Government Efficiency (DOGE).

Apple attributes the cuts to streamlining processes and eliminating overlapping functions. However, some of those laid off believe the company intends to move more sales into the “channel” – through third-party resellers. This approach reduces the cost of maintaining sales teams and can increase volume: some organizations prefer to buy through partners rather than directly from the manufacturer.

Apple also made sweeping cuts last year, with the company trimming teams amid a weak economy and the closure of a number of projects, including the development of an unmanned car. The layoffs included employees in the Services and Artificial Intelligence divisions.