Apple lays off VR staff as incoming CEO shifts focus to AI

Apple ↘ 1.75% has laid off an unspecified number of employees from its Vision Products Group, according to AppleInsider, which reported Thursday that a credible insider confirmed the cuts. The layoffs coincide with reports that incoming CEO John Ternus is putting the VR headset category "on hold" as the company shifts its focus toward AI and smart glasses.appleinsider

A Category "On Ice"

The layoffs are the latest in a series of moves that have steadily reduced Apple's spatial computing ambitions. Bloomberg's Mark Gurman reported earlier this year that the Vision Air headset was killed off in October 2025 and that display glasses were also taken off the table in January 2025. In April, multiple reports indicated Apple had "all but given up" on the Vision Pro after an M5 refresh failed to reignite consumer interest.appleinsider+2

Gurman has described the VR category as being "on ice," with a proper follow-up to the Vision Pro still in testing but no clear timeline for release. The Vision Products Group itself was reportedly broken up about a year ago, with staff split across software engineering and hardware engineering divisions. In July, the executive running the group, Vice President Paul Meade, departed for OpenAI's hardware unit.vr+2

Pivot to AI and Smart Glasses

The restructuring reflects Ternus's broader strategic priorities as he prepares to take over as CEO in early September. Bank of America analyst Wamsi Mohan wrote Thursday that Apple may be entering "a period of higher investment" in R&D and AI, moving away from the cautious, operations-focused approach of Tim Cook's tenure. Apple increased R&D investments by 32% to $11.7 billion in its most recent fiscal third quarter.marketwatch+1

Only two Vision-related products reportedly remain on Apple's roadmap: a display-free AI smart glasses product expected in 2027 and full AR smart glasses slated for the end of the decade.vr

Not a Total Shutdown

Despite the cuts, AppleInsider reported that the team has not been fully dissolved and that Apple is expected to continue developing the Vision Pro, its successors, and visionOS-based smart glasses. The release of visionOS 27 in June suggests ongoing software investment. Still, the trajectory is clear: under Ternus, Apple's spatial computing efforts are being narrowed and redirected, with VR headsets yielding ground to lighter, more consumer-friendly form factors.appleinsider