Apple Cuts 200 Jobs to Fuel Next-Gen AI Push Amid Leadership Transition

Apple is undergoing significant changes as it prepares for a major leadership shift. The company will cut over 200 jobs in its Siri and Vision Pro teams, redeploying resources to next-generation AI features and smart glasses expected around 2027.

The move comes ahead of Tim Cook's departure as CEO on September 1, 2026, when John Ternus will take the helm. Analysts expect Ternus to maintain Apple's core strategy while increasing investment in on-device AI and new hardware.

Apple has already signaled a more aggressive approach by dropping its 'net cash neutral' goal, freeing up capital for R&D and potential deals. The company's third-quarter research spending jumped 32% year-over-year to $11.7 billion, but it still lags behind peers like Amazon.

For investors, Apple retains massive cash reserves, enabling it to fund AI initiatives while maintaining robust buybacks and dividends. Wall Street currently rates AAPL a Moderate Buy, with average 12-month targets around $337-$339 per share implying roughly 9% upside.