Apple has laid off at least 60 employees from its Apple Vision Group, cutting an entire team dedicated to virtual reality development as incoming CEO John Ternus prepares to take the helm on September 1, while the company shifts its hardware priorities toward artificial intelligence and smart glasses.
The structural changes inside the Cupertino giant signal a cooling period for high-end spatial headsets as the company prepares for a leadership transition next month. While the Apple Vision Group has not been entirely disbanded, the layoffs affect at least 60 workers tied directly to virtual reality development and related positions.
The Ternus Leadership Transition and Changing Hardware Priorities
The reported restructuring comes just days before John Ternus succeeds Tim Cook as Apple Chief Executive Officer on September 1. Ternus, who currently leads hardware engineering, is expected to heavily influence the company’s product roadmap.
Incoming CEO John Ternus reportedly signed off on canceling a second-generation Vision Pro alongside a cheaper, slimmer model dubbed the Vision Air. Apple’s product focus has shifted firmly toward artificial intelligence and lightweight smart glasses.
The reorganization builds on earlier structural shifts. Bloomberg’s Mark Gurman previously reported that the original Vision Products Group was broken up, with its staff redistributed across larger hardware and software engineering organizations. Mike Rockwell, who once oversaw the group, was reassigned to lead the Siri revamp.
Consumer Hesitation and the $3,499 Price Barrier
The division’s downsizing follows years of sluggish consumer adoption. Launched in February 2024, the $3,499 headset struggled to capture the mainstream market.
High manufacturing costs compounded the adoption challenge. With component pricing climbing, Apple raised the device price to $3,699, putting it further out of reach for average buyers. Consumer reception remained mixed; while reviewers praised the hardware’s displays and spatial capabilities, its heavy design, premium price tag, and a shortage of everyday applications limited its appeal primarily to enthusiasts.
Despite the cutbacks, Apple has not abandoned the underlying operating system. The company recently released visionOS 27 beta updates and visionOS 26.6, demonstrating that software development for spatial computing continues even as enclosed headset hardware takes a back seat.
Enterprise Medical Adoption Provides a Counterweight
Even as consumer headsets face headwinds, the device has found tangible utility in specialized professional fields. A peer-reviewed study published in AJO International by researchers at UC San Diego examined 32 endoscopic surgeries to clear blocked tear ducts.
Surgeons who wore an Apple Vision Pro as their primary display finished operations 19% faster than peers using traditional monitors. This clinical efficiency highlights the kind of specialized enterprise application that executives point to when defending the platform’s long-term viability.
Earlier this year, Apple Senior Director of visionOS Product Marketing Steve Sinclair addressed lingering rumors about the platform’s future, emphasizing that the technology remains in its early stages.
“It’s still early innings for spatial computing. And so, there’s a lot of things that we’re doing, we’re learning, and continue to improve on and continue to invest in. And so I would hope that updates like visionOS 27 and all the things that we’re adding, and all the capabilities that we’re unlocking, whether it’s for consumer use or it’s for business use, serves as evidence that we are invested in this platform and we’re invested in this idea of spatial computing and building these capabilities that just can’t be done on any other device.”
Steve Sinclair, Apple Senior Director of visionOS Product Marketing
The Shift Toward Smart Glasses and Rival Competition
With virtual reality development scaled back, Apple’s wearable strategy pivots toward augmented reality smart glasses. Meta Platforms has built an early lead in that category through its Ray-Ban Meta lineup and expanded Oakley Meta portfolio, selling millions of units.
Apple reportedly aims to debut its own smart glasses at WWDC 2027. The initial model is expected to rely on built-in cameras, Siri, and Visual Intelligence rather than an internal AR display, bypassing the thermal and weight constraints that made building a lighter Vision Pro economically unfeasible.
Industry analysts do not expect Apple to launch another standalone headset before late 2028 at the earliest. Market reaction to the structural pivot was immediate; Apple shares declined 1.8% on the day of the announcement before recovering slightly in overnight trading.
