Apple Stock Falls as Ternus Considers Major Management Overhaul

Apple's stock fell nearly 2% on Tuesday as investors reacted to reports that CEO John Ternus is considering changes to the company's management structure and product development process. According to Bloomberg, Ternus is weighing measures aimed at making Apple more engineering-focused, faster and leaner.

The potential restructuring would involve reducing layers of middle management separating engineers from senior leadership. This could affect roughly half a dozen directors responsible for managing timelines and coordinating work between teams.

Apple's hardware engineering division has already started cutting these positions over the past two weeks, with affected employees given the opportunity to find other roles within the company before leaving.

Bank of America reiterated its Buy rating on Apple while warning about potential changes to consumer behavior driven by artificial intelligence. The bank identified a potential risk to Apple's ecosystem due to Meta's Muse AI assistant, which could pull engagement and transactions away from Apple's default paths.