Apple Lays Off 200 Employees to Pivot Toward AI Glasses

Apple Inc. eliminated more than 200 positions across its Siri, Vision Pro, and Intelligent Systems Experience divisions in August 2026. The layoffs, which primarily affected software engineering and machine learning roles in the United States, include the near-total shutdown of the Vision Pro gaming team and significant reductions in the immersive video unit due to high production costs and limited consumer traction.

The restructuring marks a strategic pivot away from high-end virtual reality headsets toward AI-powered smart glasses, internally codenamed N50. These glasses, expected to debut at the 2027 Worldwide Developers Conference, will rely on cameras and Visual Intelligence rather than full augmented reality displays. While the company continues to support visionOS and the M5 Vision Pro, it has reportedly canceled a second-generation headset and a lower-cost Vision Air model, with no new dedicated headset likely before late 2028.

These cuts occur during a leadership transition as Tim Cook prepares to step down on September 1. Incoming CEO John Ternus, currently the head of hardware engineering, reportedly signed off on the hardware cancellations. Simultaneously, Apple is rebuilding Siri's technical architecture to better compete with AI chatbots, partnering with Google to revamp the assistant. The company stated these realignments are intended "to evolve our business to deliver the best experiences for our users."