Apple’s Next CEO Candidate John Ternus Eyes Microsoft-Style Voluntary Buyout Program to Revamp Organization

Microsoft’s Voluntary Buyout Program and What It Means for Apple’s Organizational Transformation

In April 2026, Microsoft’s implementation of a “Voluntary Buyout Program” generated significant buzz across the tech industry. The program, which offers generous severance packages to employees whose age and tenure add up to 70 or more, has been lauded as a clever strategy to rejuvenate the workforce while avoiding the negative stigma often associated with layoffs.

Apple has been closely observing this development. For John Ternus, Apple’s Senior Vice President (SVP) of Hardware Engineering, this program might hold unique strategic implications as he contemplates the future of the company’s workforce.

John Ternus and the Challenge of Generational Transition at Apple

John Ternus joined Apple in 2001 and has been a driving force in hardware development for over 25 years. He has led the design and development of iconic products such as the iPhone, iPad, and Mac, and in 2021, he succeeded Dan Riccio as the head of the Hardware Engineering division. Today, Ternus is widely regarded as the leading contender to succeed Tim Cook as Apple’s next CEO.

If Ternus does step into the role of CEO, one of the most significant challenges he will face is managing a generational transition within Apple’s workforce. The company’s hardware engineering division is home to numerous veteran engineers and managers who have been integral to its success since the Steve Jobs era. While their expertise is an invaluable asset, it could also limit the organization’s agility and capacity for innovation.

Lessons Apple Can Learn from Microsoft’s Approach

What sets Microsoft’s voluntary buyout program apart is its “non-adversarial” nature. Unlike traditional layoffs, which often target underperforming employees, this program is entirely voluntary. Employees are offered substantial severance packages, ensuring their financial security, while the company minimizes legal risks and maintains morale within the organization.

There are several reasons why this approach could be beneficial for Apple.

First, Apple is known for its “culture of secrecy.” While this culture is critical to preventing leaks, it can also stifle open communication within the organization. By encouraging voluntary departures rather than enforcing mandatory layoffs, Apple could maintain employee morale while facilitating a natural generational transition.

Second, Apple’s success hinges on its “vertical integration” strategy. The seamless design of hardware, software, and semiconductors requires close collaboration among highly skilled engineers in various fields. Sudden personnel changes risk disrupting this collaboration, but a voluntary buyout program could mitigate such risks.

Third, Ternus’s background as a hardware engineer gives him a unique perspective. Leaders who have firsthand experience in the trenches are often better equipped to drive organizational change in a way that takes employee input into account. This collaborative approach could yield long-term benefits compared to top-down mandates for workforce reductions.

Apple at a Technological Crossroads

The conversation around organizational strategy is especially pertinent now as Apple faces several technological turning points.

While the transition to Apple Silicon for Mac is nearly complete, the development of next-generation chip architectures and AI-focused processors requires fresh ideas and skill sets. The field of spatial computing, exemplified by Vision Pro, demands new approaches to product development. Additionally, advancements in autonomous driving technologies (Project Titan) and the expansion of healthcare technology highlight the need for a reorganization of the company’s capabilities.

In this context, the ability to balance the contributions of experienced veterans with the infusion of fresh talent will be a critical test of leadership for the next CEO.

Industry Implications and Future Outlook

It remains uncertain whether Apple will adopt a Microsoft-style voluntary buyout program. Historically, Apple has been reluctant to disclose details about its internal HR policies, and it is unlikely to announce a large-scale policy shift publicly. However, if Ternus ascends to the role of CEO and pursues organizational reform, it is plausible that Microsoft’s approach could serve as a foundation for his strategy.

From a broader industry perspective, all the major tech giants—Google, Apple, Meta, and Amazon—are grappling with challenges stemming from their massive organizational scales. Microsoft’s pioneering move with its voluntary buyout program could set a precedent, encouraging other tech giants to adopt similar strategies.

Apple’s future will largely depend on Ternus’s ability to strike a balance between “innovation” and “stability.” Preserving the revolutionary culture of the Steve Jobs era while maintaining the stable foundation built under Tim Cook will require a delicate equilibrium. A Microsoft-style voluntary buyout program could prove to be a valuable tool in achieving this essential organizational renewal.

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Q: What role does John Ternus hold at Apple?
A: John Ternus is Apple’s Senior Vice President (SVP) of Hardware Engineering. Since joining the company in 2001, he has led the development of major products such as the iPhone, iPad, and Mac. He took over as the head of the Hardware Engineering division from Dan Riccio in 2021 and is currently seen as the leading candidate to succeed Tim Cook as CEO.

Q: What is Microsoft’s voluntary buyout program?
A: The program offers employees whose age and tenure add up to 70 or more the option to voluntarily retire in exchange for a substantial severance package. Unlike traditional layoffs, the program is entirely voluntary, minimizing its impact on employee morale and reducing legal risks for the company.

Q: What are the potential benefits for Apple in adopting this program?
A: The program could help Apple achieve “non-adversarial organizational renewal.” It would allow the company to maintain its culture of secrecy while facilitating a natural generational transition. Additionally, it could help ensure that Apple’s cross-disciplinary collaboration remains intact during workforce changes and enable a smoother shift towards new technologies like AI and spatial computing.