Apple is laying off 147 employees across its Silicon Valley offices – reportedly mostly software engineers working on augmented reality products – a fresh blow to the company's struggling virtual reality ambitions.
The cuts come just weeks before Apple is expected to unveil its next generation of iPhones, including the highly anticipated iPhone 18 lineup and its first foldable iPhone.
According to a WARN filing released Tuesday, 147 employees across three Apple offices in the Silicon Valley area are set to lose their jobs.
The layoffs include 79 workers at Apple's headquarters in Cupertino, along with 40 employees at one Sunnyvale office and another 28 at a second Sunnyvale location.
Most of those being cut are software engineers, while the Sunnyvale offices have been particularly affected by layoffs involving workers developing augmented and virtual reality products.
The job losses are scheduled to begin October 19.
The cuts are the latest sign that Apple's expensive push into so-called spatial computing, the technology behind virtual reality goggles, has struggled to gain traction since the company launched the Vision Pro in 2024.
Priced at a staggering $3,499, the headset was unveiled with enormous fanfare as Apple's biggest new product category in years.
Apple is laying off 147 employees across its Silicon Valley offices, including 79 workers at Apple's headquarters in Cupertino (pictured)
The cuts are the latest sign that Apple's expensive $3,499 Vision Pro, unveiled with enormous fanfare in 2024 as its biggest new product category in years, has struggled to gain traction
The Vision Pro goggles have struggled to attract mainstream consumers, thanks to its high price tag, hefty weight and limited selection of apps and experiences, all of which make it a difficult sell.
The headset's launch in San Francisco in February 2024 provided an early glimpse of the problem, with reports suggesting Apple employees and media representatives appeared to outnumber customers at the company's flagship store.
Apple later attempted to breathe new life into the product with an updated M5 Vision Pro, but the refresh has failed to generate the kind of demand the company had hoped for.
MacRumors previously reported that Apple had effectively abandoned plans for a direct successor to the current Vision Pro, instead shifting its focus toward other products in the spatial computing category.
Apple is now believed to be placing greater emphasis on lighter smart glasses, which could bring some of the technology developed for the Vision Pro to a much broader audience without requiring consumers to wear a bulky headset.
The latest layoffs appear to reflect that changing strategy, with Apple's Vision Products Group scaling back some projects even as the company continues to explore the future of augmented reality.
Apple has also reportedly cut positions connected to gaming and immersive video content for the Vision Pro.
That is particularly significant because Apple had invested heavily in creating immersive experiences designed to showcase what the headset could do, including sports, entertainment and nature programming.
CEO Tim Cook is expected to hand over the reigns to current Senior Vice President of Hardware John Ternus
The Vision Pro was supposed to mark Apple's entry into a new era of computing, allowing users to interact with digital objects overlaid on the real world and navigate apps using their eyes and hands.
Instead, its enormous price has kept it firmly in the niche category.
The latest job cuts also come at a major moment for Apple more broadly.
The company is preparing for its annual September product event, where it is expected to unveil its next generation of iPhones – traditionally one of the biggest events on Apple's calendar.
The upcoming launch is expected to include the iPhone 18, while Apple is also reportedly preparing its first foldable iPhone, a product that could become one of the company's most significant hardware launches in years.
The layoffs also come as Apple prepares for a major leadership transition.
CEO Tim Cook, who held the chief position for 15 years, is expected to step down from the top job, with current Senior Vice President of Hardware John Ternus expected to succeed him.
Apple did not respond to requests for comment about the latest layoffs.
