Apple layoffs: Over 5,000 AppleCare jobs could have been replaced by AI, report says

Apple considered cutting over 5,000 AppleCare support jobs as part of a broader push to use AI for customer service. According to a Bloomberg report, Apple’s plan for workforce reduction has been put on hold, which means the tech giant may not conduct further layoffs.

Under new Apple CEO John Ternus, the company planned for a more efficient workflow by using AI to automate a significant portion of customer support. The idea was to use AI-powered phone and web support agents to handle some tasks that are currently performed by human AppleCare employees. Reportedly, Apple planned to cut jobs but decided not to go ahead.

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Apple is already using AI in customer support. In the US and Canada, customers calling Apple Support have started receiving an AI voice assistant that answers questions and provides guidance. However, the AI system can transfer the call to human customer support.

Apple layoff plans

While Apple has indefinitely put the layoff plan on hold, the reported 5,000-job cut proposal indicates that it is exploring a much bigger role for AI in customer support. This means Apple could reconsider the plan later if its AI support systems become more capable. Furthermore, the company may also plan to reduce the AppleCare Support workforce gradually by hiring fewer people or not replacing employees who leave.

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According to the report, Ternus is considering a broader overhaul, and the AppleCare AI proposal is part of that greater effort. Apple is already restructuring the hardware engineering division by cutting some engineering program management roles. Several managers were reportedly affected, including around six directors. Job cuts were also reported in Siri, Vision Pro, and AI software teams.

Alongside restructuring teams, Apple is also planning to fast-track product development and change the product launch schedule, potentially spreading product launches throughout the year instead of focusing mainly on the traditional spring and fall periods.