Apple Slashes Workforce Amid Memory Chip Price Squeeze

Newly appointed Apple CEO John Ternus is reportedly planning workforce reductions, including layoffs and project cancellations, as the tech giant faces financial strain from surging memory chip costs and slowing services revenue.

The move follows a pattern common among incoming CEOs, who often restructure their teams to align with their strategic vision. However, in Apple's case, the layoffs appear driven more by genuine financial pressure than executive preference.

According to tech expert Rohan Paul, Apple is facing 'money pressure from 2 directions': memory shortages raising component costs and services revenue falling quarter-over-quarter since June.

The company issued cautious revenue guidance for the current quarter in July, citing its inability to source enough memory chips to meet consumer demand. Former CEO Tim Cook acknowledged the pricing situation, stating that Apple had 'reluctantly raised prices' due to a 100-year flood on memory pricing with exponential increases.