John Ternus (Photo: Apple)

[DigitalToday Seung-a Yoo, intern reporter] Apple has begun a sweeping overhaul centred on expanding product launches and slimming its organisation. On Sept. 29 (local time), IT outlet 9to5Mac reported that Apple Chief Executive John Ternus (존 터너스) is pushing changes to run Apple faster and leaner.

The core is to change both how products are launched and how the organisation is structured. Ternus is pursuing plans to release more products faster than before and increase experimental efforts. To do that, Apple is reviewing ways to rely less on the traditional launch cycle concentrated in spring and autumn and unveil new products more frequently throughout the year.

The organisational overhaul focuses on creating a lean, engineering-led organisation. Ternus is pursuing plans to eliminate some middle-management roles to reduce layers between engineers and senior executives. Cost cuts and restructuring are also under way.

Staff adjustments have also begun. In Apple's hardware engineering division, several engineering program managers, or EPMs, are reported to have left the organisation over the past two weeks. EPMs have long been a key role at Apple, responsible for schedule management and coordinating work across teams in the product development process. The restructuring also includes about 6 director-level staff, one of the company's highest employee grades. They were given time over the next few weeks to find other roles inside Apple, and could leave the company within this year if they do not secure a new post.

The scope of cost cutting could expand further. Ternus is reported to have argued for years that Apple needs to become leaner. Apple reviewed a plan to cut about 5,000 AppleCare staff this summer, judging that AI-based advisers could take over some tasks, but that plan is currently on hold.

Boosting services revenue is also a pillar of the overhaul. Ternus is discussing ways to increase revenue in the services division with Eddy Cue (에디 큐), Apple's senior vice president of services, and Chief Financial Officer Kevan Parekh (케반 파레크). Launching new services and generating more revenue from existing products and services are also under review.

The overhaul is seen as a move to change product launch cycles and the way the organisation is run, beyond simple cost cutting. Internal sentiment is reported to be not smooth. A source described the current internal situation at Apple as "chaotic". The product development organisation is reported to be under pressure to release more products more often and in a shorter period of time.

The key question going forward is whether diversifying launch schedules will translate into actual changes in product strategy, and whether improving efficiency in the engineering organisation and expanding services revenue can deliver results at the same time. Apple appears to have entered an early stage of changing its existing product launch and organisational operating methods under the Ternus leadership.

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#Apple #John Ternus #AppleCare #Eddy Cue #Kevan Parekh
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