Apple is cutting employees' AI spending budgets as part of a cost-cutting drive, even as it seeks to put AI at the center of its operations. According to Bloomberg, the daily cap for some engineers fell from $300 to $200 last month and could drop to as low as $100 for some engineering teams; many non-engineering groups already face a $100 cap, which could be reduced to $25. Employees needing higher allowances can seek exemptions from senior leadership, and internal reactions are mixed: some say the old limits were too generous since few used the full $300, while others worry about layoffs. Apple said R&D expenses rose 32% in fiscal 2026 and operating expenses jumped 22% to $75.5 billion, or 16% of net sales. The actual savings from the cuts remain unclear.
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AAPLartificial intelligencecost cutting
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Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 11/03/2026 | 331.74 |
| Change that session | -1.94% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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