Apple is restricting how much some employees can spend on AI tools, according to Bloomberg, as the company seeks to reduce costs. In October, the daily allowance for some engineers fell from $300 to $200, with further reductions to $100 reportedly under consideration for some staff.
Many teams outside engineering already have a $100 daily limit, while some groups could face a cap of $25. Apple is also asking certain teams to use less expensive AI models or switch to on-device AI. Employees who need additional funding can request an increase from executives.
Engineers have received larger allowances because AI-assisted coding can use substantial numbers of tokens. Apple employees can use services including Claude, ChatGPT and Gemini. However, some employees told Bloomberg that few were spending their full $300 allowance, which could limit the savings from the cuts.
Apple has also brought in external productivity consultants to review some divisions. The spending limits and reviews have contributed to employee concerns about possible restructuring. CEO John Ternus, who took over on September 1, reportedly wants to reduce corporate hierarchy and bloat so the company can accomplish more with fewer people.
Sources: MacRumors.