Apple is eliminating 147 positions across its Silicon Valley operations, with most cuts targeting software engineers who worked on augmented and virtual reality products, marking another setback for the company’s struggling Vision Pro headset that launched in 2024 at $3,499.
Layoffs Hit AR and VR Teams Hardest
According to a WARN filing released Tuesday, the job cuts will affect 79 employees at Apple’s Cupertino headquarters, 40 workers at one Sunnyvale office, and 28 at a second Sunnyvale location. The layoffs, scheduled to begin October 19, come just weeks before Apple plans to unveil its next iPhone lineup, including the iPhone 18 series and its first foldable phone model. The Sunnyvale offices, particularly affected by the reductions, housed teams developing augmented and virtual reality technologies.
Apple has also cut positions connected to gaming and immersive video content development for the Vision Pro platform. The terminations reflect a strategic shift away from the company’s ambitious spatial computing initiative that failed to capture consumer interest despite massive marketing investments and high-profile product launches across major cities.
Vision Pro Struggles to Find Market
The Vision Pro headset launched in San Francisco in February 2024 with substantial fanfare but immediately showed signs of trouble. Reports from the flagship store opening indicated Apple employees and media representatives outnumbered actual customers. The $3,499 price tag, combined with the device’s considerable weight and limited app selection, created barriers that prevented mainstream adoption among everyday consumers.
Apple attempted to revive interest with an updated M5 Vision Pro model, but the refresh failed to generate expected demand. MacRumors previously reported that Apple has effectively abandoned plans for a direct successor to the current Vision Pro, choosing instead to pivot toward other spatial computing products that might prove more commercially viable.
Strategic Shift Toward Smart Glasses
The company now appears focused on developing lighter smart glasses that could deliver augmented reality features to a broader audience without requiring consumers to wear bulky headsets. This strategic redirection suggests Apple recognizes the limitations of current VR technology in reaching mass market appeal. The Vision Products Group is scaling back some projects while continuing to explore augmented reality applications that align better with consumer preferences and daily use patterns, preserving the technological investments while seeking more practical delivery methods.
