Apple is laying off 147 employees across three Silicon Valley locations, primarily software engineers who worked on augmented and virtual reality products, marking another setback for the tech giant’s struggling Vision Pro headset that launched in 2024 at $3,499.
Silicon Valley Offices Hit by Layoffs
According to a WARN filing released Tuesday, the job cuts will affect 79 workers at Apple headquarters in Cupertino, 40 employees at one Sunnyvale office, and 28 at another Sunnyvale location. The layoffs are scheduled to begin October 19, just weeks before Apple plans to unveil its next iPhone generation, including the iPhone 18 lineup and its first foldable iPhone model. Most affected employees are software engineers, with Sunnyvale offices particularly impacted due to their focus on augmented and virtual reality development.
Vision Pro Struggles to Find Market
The layoffs signal continued trouble for Apple’s expensive venture into spatial computing technology. The Vision Pro headset launched in February 2024 at the company’s San Francisco flagship store, where Apple employees and media representatives reportedly outnumbered actual customers. The product has failed to attract mainstream consumers due to its steep $3,499 price point, heavy weight, and limited app selection. Apple attempted to revive interest with an updated M5 Vision Pro model, but the refresh failed to generate expected demand.
Strategic Shift Toward Smart Glasses
MacRumors previously reported that Apple has effectively abandoned plans for a direct Vision Pro successor, instead redirecting focus toward developing lighter smart glasses. This new direction aims to bring augmented reality technology to broader audiences without requiring bulky headsets. The company has also cut positions related to gaming and immersive video content for the Vision Pro. The latest workforce reduction reflects Apple’s changing strategy as its Vision Products Group scales back projects while continuing to explore augmented reality’s future potential.
What This Means
The job cuts represent a rare admission of product failure for Apple, which has built its reputation on carefully curated product launches and market success. The company’s pivot toward smart glasses suggests Apple remains committed to augmented reality technology but recognizes the Vision Pro’s current form factor cannot achieve mass market appeal. As Apple prepares to launch new iPhone models, the layoffs serve as a reminder that even technology leaders face significant challenges when introducing entirely new product categories to cost-conscious consumers.