Apple’s Leadership Exodus and its AI Struggles

Published on: Jul 13, 2025

SAN FRANCISCO – Apple Inc. has held a leading position in the tech world for years, known for its strong brand and innovation. But by mid-2025, the company is facing several hurdles that could impact its future.

A wave of leadership changes, ongoing debates about Tim Cook’s strategy, slow progress in artificial intelligence, and growing employee unrest have left many wondering how Apple will respond. Here’s a look at the current challenges and what they might mean for the company.

Several high-profile departures have put Apple’s leadership team under the spotlight. Jeff Williams, Apple’s longtime Chief Operating Officer, announced he would step down in July 2025.

Williams, considered by some as a likely successor to Tim Cook, played a central part in Apple’s supply chain management and the development of products like the Apple Watch. Sabih Khan, previously senior vice president of Operations, will take over as COO.

With Williams now set to manage the design team, there are doubts about whether Apple has enough experienced leaders to keep its innovation engine running. Cook, whose background is in operations, will soon take direct control of design—a move some analysts question.

Apple’s Talent Exodus

The company’s AI team has also lost key figures. Ruoming Pang, who led Apple’s foundation AI models, left for Meta’s Superintelligence Labs in early July 2025. Pang’s team, with around 100 engineers, was central to Apple’s efforts to improve its AI offerings.

Meta and other big players are hiring aggressively, taking talent from Apple and other rivals. This loss follows the exit of a senior Siri researcher, adding to concerns about talent leaving the AI group and low morale among those who remain.

The design department has also struggled to fill big shoes since Jony Ive left in 2019. Having Tim Cook manage the design team, given his operations expertise, has raised more questions about whether Apple’s design legacy can be maintained.

Tim Cook has led Apple to huge financial gains since becoming CEO in 2011. Under his guidance, Apple’s shares outperformed most of the market, thanks in part to strong supply chain work and the growth of the services business, which now makes up a quarter of Apple’s revenue. Cook has managed tough tasks like shifting production away from China.

But as artificial intelligence becomes the main battleground in tech, some analysts wonder if Cook’s skills are still the right fit. Experts at LightShed Partners say Apple now needs leadership focused on bold new products, especially in AI.

Apple’s internal innovation

They point out Apple’s slow progress with Siri and hesitation to drive a major device upgrade cycle as signs that Apple is falling behind. Industry voices suggest that partners, like OpenAI, are filling gaps in Apple’s internal innovation, which frustrates some engineers.

Critics say Cook’s careful approach, which worked well for scaling hardware and operations, might not be enough for an AI-driven future. Competitors like Google, Meta, and Samsung are moving faster with AI tools, making Apple’s slower steps more noticeable.

Apple’s push into artificial intelligence is not keeping pace with its rivals. The Apple Intelligence features introduced at the 2024 Developers Conference—such as email summaries and AI-generated emoji—felt like small steps when compared with what others are offering. Meta’s Ray-Ban smart glasses and OpenAI’s collaborations have raised the bar for what consumers expect from on-device AI.

There have also been delays and missteps. Upgrades to Siri and other AI features have arrived late. Apple pulled back some iPhone 16 ads after complaints over misleading AI claims, which led to legal trouble and more scrutiny. Much of Apple’s AI work depends on external partners, sparking worries about the company’s ability to deliver major AI breakthroughs on its own.

As more key staff leave, including Pang, confidence inside the AI teams has taken a hit. Reports suggest many engineers are unhappy and worried about the company’s direction, while competitors are taking advantage by hiring away top Apple talent.

Workforce Strain Grows Amid Changes

While Apple hasn’t made the large-scale job cuts seen at companies like Microsoft or Recruit Holdings, there are worrying signs. Morale is reported to be low, especially in the AI group, where pressure is mounting as the company tries to keep up in the AI race. The loss of key leaders and ongoing internal reshuffles have left staff feeling uneasy about the future.

Industry trends point to less focus on supportive leadership after layoffs, which may be affecting Apple, too. As the workplace climate changes, those left behind after leadership changes may worry about further cuts or instability. Apple hasn’t confirmed any mass layoffs, but the signs of internal stress are clear.

The combination of leadership shake-ups, slow AI progress, and staff frustration points to a company at a key moment. Some industry experts think Apple needs a new product-driven CEO to spark innovation, even suggesting acquisitions like Perplexity AI to boost its AI profile. Others believe Cook’s track record of financial growth is proof he can steady the ship, and that Apple’s AI projects just need more time.

Apple shares have dropped 15% so far in 2025, showing investor concern. However, if new leadership steps up and Apple finds ways to innovate again in AI, the company could still regain its momentum in the tech world. The months ahead may prove critical for shaping Apple’s next chapter.