Apple to move health, fitness divisions to services in reorganisation

Services chief Eddy Cue will gain supervision over Apple's health and fitness teams, Craig Federighi, head of software engineering, will now oversee the Apple Watch operating system

By Mark Gurman

 

Apple Inc. is preparing to expand the roles of some top executives in response to the pending departure of longtime Chief Operating Officer Jeff Williams, according to people familiar with the matter.

 

Services chief Eddy Cue will gain supervision over Apple’s health and fitness teams, said the people, who asked not to be identified because the moves haven’t been announced. Craig Federighi, head of software engineering, will now oversee the Apple Watch operating system, they said.

 

The executives each have decades of experience at Apple, where they’ve steadily gained influence and helped launch some of the company’s biggest offerings. Williams, meanwhile, is stepping down at the end of this year after serving as COO since 2015.  

 

Since announcing his retirement plans in July, Williams has transferred oversight of the company’s supply chain, operations, AppleCare customer support and its work in China to new operating chief Sabih Khan.

 

A spokesperson for Cupertino, California-based Apple declined to comment.

 

The move to put Cue in charge of Apple’s health efforts comes ahead of the planned launch of a new subscription service dubbed Health+. It also stems from a desire to combine the company’s health and fitness work under one roof. 

 

The health and fitness groups, managed by Sumbul Desai and Jay Blahnik, respectively, had long reported to Williams. Under the new structure, the teams will be consolidated under Desai, with Cue serving as her boss. Blahnik will report to Desai, the people said.

 

Federighi, well known to Apple fans for his splashy appearances in company presentations, will now oversee watchOS. It marks the second expansion of duties for the executive this year. He previously took charge of the Siri voice assistant and visionOS, the operating system for the Vision Pro headset. 

 

John Ternus, Apple’s head of hardware, is gaining some additional power as well. He will assume sole control of Apple Watch hardware engineering. Though that team already reported to him, Williams had overseen new versions of the smartwatch — a product he helped launch a decade ago.

 

Williams also led Apple’s hardware and software design teams. The company previously announced that those groups, managed by Molly Anderson and Alan Dye, respectively, will report directly to Chief Executive Officer Tim Cook once Williams departs.

 

More executive changes are on the horizon at Apple, Bloomberg News has reported. The company is searching for a replacement for John Giannandrea, its artificial intelligence chief. And Lisa Jackson, head of environment and government affairs, is considering retirement. 

 

Johny Srouji, who leads Apple’s chip division and recently launched the company’s first cellular modem, is also evaluating his future at the tech giant.

 

Ternus is widely seen as a successor to Cook, who has run Apple since 2011 and turns 65 next year. At 50, Ternus is the youngest member of Apple’s executive team and has taken on a bigger role in recent months. That includes having more sway over the company’s product plans.  

 

Desai’s new oversight of Blahnik’s team follows an internal investigation into conduct by Blahnik, the Fitness+ chief. He was previously sued by a former employee, who accused him of inappropriate behavior and fostering a hostile workplace.

 

Desai’s purview includes the Health app and other health-related product development, as well as medical research and clinical validation. This territory will now move under Cue’s supervision. He already oversees Apple’s TV+ and music streaming services, iCloud, Maps and other online offerings.

 

Placing the health and fitness efforts under Cue underscores the company’s ambition to turn wellness initiatives into a significant business. Fitness+, launched in 2020, offers video-based workouts and wellness programs — similar to Peloton Interactive Inc. content — for a monthly fee.

 

Apple’s upcoming Health+ subscription will feature an artificial intelligence-powered assistant, allowing will users to manage their well-being through personalised recommendations on nutrition, exercise and sleep. That service is planned for launch in 2026.