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Apple Reportedly Tightens the Belt On Employee AI Budgets Amid Cost-Cutting Drive

According to Bloomberg, Apple is tightening employee spending on AI tools by lowering daily usage caps as part of a broader cost-cutting drive. Last month, the daily allowance for select engineers fell from $300 to $200, and the company is reportedly planning deeper cuts that could bring some engineering teams to $100 and non-engineering departments, which mostly already have a $100 limit, to $25. Staff needing higher limits for critical work must seek exemptions from senior management. Apple declined to comment. The move comes as research and development spending rose 32% in fiscal 2026 and operating expenses climbed 22% to $75.5 billion, while CEO John Ternus pushes for a faster, leaner company with fewer management layers.

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