Apple Cuts 200 Jobs to Pivot Toward AI Smart Glasses

Apple Inc. eliminated more than 200 positions across its Vision Pro, Siri, and Intelligent Systems Experience teams to realign resources toward artificial intelligence. The cuts include approximately 100 roles from the Vision Pro organization, where the company is largely shutting down its gaming team and reducing its immersive video unit due to high costs and limited user traction.

This restructuring marks a strategic pivot away from virtual reality headsets toward AI-powered smart glasses, internally codenamed N50. The new hardware, expected to debut at the 2027 Worldwide Developers Conference, will rely on cameras, Siri, and Visual Intelligence rather than a full augmented reality display. Incoming CEO John Ternus reportedly signed off on canceling a second-generation Vision Pro and a lower-cost Vision Air model following weak reception for the October 2025 refresh.

The layoffs follow a period of instability, including the retirement of Dan Riccio and the reassignment of Vision Pro architect Mike Rockwell to lead the Siri revamp. While Apple continues to support the visionOS platform and sells the M5 Vision Pro, it is unlikely to launch another dedicated headset before late 2028. The company stated these changes are intended to "evolve our business to deliver the best experiences for our users."

These shifts occur as Apple manages rising production costs caused by an AI-driven memory shortage, leading the company to raise prices on Macs and iPads. Simultaneously, Apple is pursuing a lawsuit against OpenAI over allegations of trade theft.