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Apple has reduced about 100 positions in its digital services division, targeting teams such as Apple Books and Apple News, as part of a strategic realignment.
This decision marks a rare shift for the company and is part of a strategic overhaul within this essential division, according to Bloomberg sources.
On August 27th, Apple reportedly implemented layoffs across various teams under the direction of Senior Vice President Eddy Cue. The most substantial cuts were made to the teams handling the Apple Books app and the Apple Bookstore. Layoffs also affected other services, including those managing Apple News. Engineering positions were also reduced, particularly in the applications division managed by Vice President Roger Rosner. Employees impacted by the job cuts have supposedly been given a 60-day period to secure alternative positions within the company before their termination is finalized.
Although Apple Books is now said to be a lower priority and won’t be a major component of Apple’s services strategy, it will continue to receive sporadic updates. On the other hand, despite recent staff reductions, Apple News continues to be a major focus for the company.
Apple’s services division, which encompasses Apple Music, Apple News, and Apple TV+, has grown increasingly crucial, contributing over 22% to the company’s revenue in fiscal 2023. This growth has provided a buffer against the slowing demand for Apple devices.
Apple chose not to comment on the Bloomberg report.
How Frequently Do Major Tech Companies Reduce Their Workforce Nowadays?
While Apple typically experiences few layoffs, the company has executed at least four rounds of job cuts in 2024. Earlier in the year, Apple let go of hundreds of employees following the cancellation of its self-driving car and microLED display ventures. Additionally, a team based in San Diego was disbanded.
In contrast, other Silicon Valley firms are experiencing more significant job cuts amid slowing growth and a shift toward artificial intelligence. Cisco is reducing its global workforce by 7%, impacting thousands of positions, due to declining revenues. Similarly, Intel is slashing its workforce by over 15% as part of a $10 billion cost-saving plan for 2025, resulting in over 15,000 job losses.
