Officeworks has reportedly stopped ordering Apple products as the retailer undertakes a major overhaul of its product strategy, with an increased focus on expanding its own private-label range. The move comes as Apple cuts approximately 20 roles across its Australian and New Zealand operations.

Apple, long known in the retail sector for its tight control over margins, is understood to offer resellers as little as 4% on iPhone sales. Sources claim the technology giant is reducing investment in its direct sales force while steering more business toward third-party resellers — typically referred to as “the channel.”

ChannelNews understands that around 20 positions have been eliminated from Apple’s regional sales teams, with further reductions possible. Affected employees have said the restructuring is intended to consolidate account management across enterprise, education and government customers.

Officeworks, owned by Wesfarmers, has traditionally relied on Apple products to help drive customer traffic. However, the retailer is now rationalising its stock range and recently removed several senior merchandise managers and buyers. Industry observers say that if Officeworks’ private-label push fails to improve margins — especially following a drop in average basket size from $48 to $17 this year — the company could consider closing underperforming stores.

Bloomberg earlier reported that Apple is similarly reviewing its global sales operations, eliminating dozens of roles to streamline how it serves business, education and government clients. Apple has confirmed changes to its sales division but has provided few details.

“To connect with even more customers, we are making some changes in our sales team,” a spokesperson said.

The job cuts have surprised some internally, as Apple rarely reduces staff. The company is on track for nearly US$140 billion in sales for the December quarter, a new record, and is preparing to launch a lower-cost laptop early next year aimed at education and business markets.

Employees affected by the restructuring reportedly have until January 20 to find alternative positions within Apple or will leave with severance packages. Some of those impacted in Australia are said to include long-serving managers with two to three decades at the company.

Apple’s sales organisation reports directly to CEO Tim Cook, who has dismissed speculation about his retirement. Cook has emphasized that workforce reductions are a “last resort,” though Apple has implemented cuts in the past. In 2024, the company shed staff linked to cancelled initiatives — including its self-driving car program and an abandoned in-house display technology project — as well as certain AI and services teams.