apple inc AAPL was hit by a new problem – and this time it has nothing to do with it popular product portfolio or its growing service business.
What happened: Apple sees ‘unprecedented’ executive-level turnover rate, Bloombergs Markus Gurman said in its weekly “Power On” newsletter. Since the second half of 2022, the company has lost 11 senior executives just below the level of senior vice president, who reports directly to CEO Tim Cook.
Some of the high-profile departures are vice presidents who oversee areas such as industrial design, the online store, information systems, Apple’s cloud efforts, aspects of hardware and software development, privacy issues, emerging market sales, subscription services and procurement, the columnist said.
And while the company has also been hiring executives, the departures have in many cases resulted in Apple reallocating responsibilities or promoting employees from within, Gurman said. While Apple has had candidates for most of the roles, it hasn’t found a replacement Evans Hanky, Head of Industrial Design. The design team now reports to the Chief Operating Officer jeff williams, he noticed.
Gurman added that the recent departures were of Apple veterans, noting that several of Apple’s design and service vice presidents were in the prime of their careers and might later have advanced to the role of senior vice presidents.
Also read: Everything you need to know about Apple stock
Just the beginning: Gurman said the spate of departures could be just the beginning, as some vice presidents who have been with Apple for decades could retire in the next few years. Longtime Apple mainstays who helped reinvent the company are also nearing the end of their careers, he said, while also forecasting fluctuations in the lower ranks.
Some of the reasons Gurman cites for the latest developments are:
- A growing burden of…
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