According to Bloomberg, Apple has taken a rare layoff action and eliminated dozens of sales positions to streamline sales channels to businesses, schools and government agencies. According to people familiar with the matter, Apple management has notified affected employees in the past few weeks. The layoffs covered the entire sales department, with some teams particularly hard hit, but the company did not tell employees exactly how many positions would be eliminated.
Affected positions include account managers serving large businesses, schools and government agencies, as well as employees who run Apple Briefing Centers. These centers are typically used for institutional client meetings and product demonstrations to potential major clients.
Apple confirmed on Monday that it was reorganizing the unit but did not provide specific details. "In order to reach more customers, we are making some adjustments to the sales team, which will affect a small number of positions,"Apple said, "We are continuing to hire, and affected employees can apply for new positions."
Division-wide layoffs are unusual for Apple, and this one came as a surprise to affected employees. Apple's move is particularly concerning at a time when the company's revenue is growing at its fastest pace in years. Apple is on track to post revenue of nearly $140 billion in the December quarter, breaking its previous record.
Internally, Apple is positioning the layoffs as an effort to streamline its sales team and eliminate overlapping responsibilities. But some affected employees said the move was actually an effort to shift more sales to third-party resellers, what Apple calls "the channel." Some institutional clients prefer to work with these indirect sellers, and the adjustment could also help Apple reduce internal costs, such as payroll, they said.
The layoffs involve senior managers and in some cases even employees who have worked at Apple for 20 or 30 years. One of the main targets of the cuts: the government sales team responsible for working with government agencies including the U.S. Department of Defense and Justice.
The team was already facing a tough situation. Previously, they experienced the pressure caused by the 43-day shutdown of the U.S. government and the spending reduction measures introduced by the Department of Government Efficiency. The Ministry of Government Efficiency has been trying to slash the government budget.