Apple Trims Employee AI Budgets, Deepening Worries Of Layoffs Under New CEO
Apple's decision to cut the amount some employees can spend on artificial intelligence tools is adding to anxiety inside the company about possible layoffs. The iPhone maker has lowered daily AI spending limits for some engineers and is weighing deeper cuts, even as it pushes staff to use AI more in their work. Some divisions have also brought in outside consultants to review their operations,…
Apple has reduced the daily spending caps for some employees on artificial intelligence tools, a move that is deepening concerns about possible layoffs amidst the leadership change. The iPhone manufacturer has lowered the daily AI spending limit from $300 to $200 for certain engineers, with potential cuts going as low as $100 a day.
This comes as Apple pushes employees to utilize AI more in their work and brings in outside consultants to review operations, heightening fears of restructuring. Bloomberg reported that the caps were cut last month, citing anonymous sources. The new CEO, John Ternus, is aiming for a leaner and faster Apple. While some employees argue that the old limit was more generous than necessary, others see the cuts as a sign of wider cost-cutting.
The company's overall spending is rising, with research and development expenses increasing by 32 percent in fiscal 2026, driven by higher infrastructure and AI costs.
Written by urgent.news from Free Press Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
