- The company is eliminating around 100 positions in Tuesday’s decision.
- The layoffs will include some employees from the Books and News apps.
OUR TAKE
Apple has recently cut around 100 jobs in its digital services group, focusing on reducing roles related to Apple Books and other services. This move reflects a shift in priorities, as Apple re-evaluates its focus within the services division. Despite the layoffs, Apple continues to see services as a key growth area, which has become increasingly significant in its revenue. The cuts come amidst broader industry trends where tech companies are adjusting their workforce in response to changing market conditions and growth challenges.
-Tacy Ding, BTW reporter.
What happened
Apple Inc. has taken the unusual step of cutting around 100 jobs in its digital services group, as part of a shift in priorities for this crucial division, according to sources familiar with the matter.
The company notified the employees affected by the layoffs—who were part of several teams in Senior Vice President Eddy Cue’s services group—on Tuesday. Sources familiar with the situation, who spoke on condition of anonymity because the information is not yet public, provided this detail.
The layoffs included some engineering roles, with the largest cuts affecting the team responsible for the Apple Books app and the Apple Bookstore. There were also reductions in other services teams, including the one managing Apple News.
Apple Books has become less of a priority for the company, which no longer views it as a major component of its services lineup. However, the Books app is still expected to receive new features over time, according to sources. The layoffs affecting Apple News are not indicative of a reduced focus on the service, they added.
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Why it’s important
Layoffs are relatively uncommon at Apple, although the company has conducted at least four rounds of reductions in 2024. Earlier this year, it let go of hundreds of workers when it shut down its self-driving car project and its microLED display initiative. Additionally, it closed a team based in San Diego.
Services have generally been a growth engine for Apple in recent years. They accounted for over 22% of sales in the most recent fiscal year, up from less than 10% a decade ago. This increase has helped offset periods of sluggish demand for devices.
Many of the cuts occurred within the applications organisation overseen by long-time Vice President Roger Rosner. Employees were given 60 days to secure another position within Apple before their termination.
Some of Apple’s Silicon Valley peers are making more substantial job cuts as they navigate slowing growth and a shift towards artificial intelligence. Cisco Systems Inc. is reducing its workforce by approximately 7%, while Intel Corp. is cutting more than 15% of its staff.
