As part of a "shift in priorities," Apple has made cuts to its workforce across senior VP Eddy Cue's Services division, Bloomberg reports. About 100 employees impacted by the cuts were reportedly given a 60-day window to secure another position within Apple before their termination becomes effective.
The scope of the layoffs extended beyond a single team, with some employees working across multiple departments feeling the ripple effects of Apple's apparent cost-optimization effort. The layoffs primarily affected the Apple Books app and Apple Bookstore teams, but also impacted the Apple News team, marking the fourth round of staff reductions for the company in 2024.
According to the report, the layoffs signal that Apple Books has become less of a priority for the company, which doesn't see it as a major part of its services lineup. However, the Books app is still expected to get new features over time. As for Apple News, the layoffs were said to be an indication that it is less of a focus for Apple.
The Services division has been a key growth driver for the company in recent years. Services now account for over 22% of Apple's sales, a significant increase from less than 10% a decade ago.
The importance of the Services segment has been particularly evident during periods of slower device sales, helping to bolster Apple's financial performance. However, this latest move suggests that even high-performing divisions are not immune to restructuring efforts.
These layoffs follow earlier staff reductions at Apple this year, including the closure of its ambitious self-driving car project and the shutdown of a microLED display initiative. The company also dismantled a team based in San Diego.
Apple's approach to layoffs has been more measured compared to some of its Silicon Valley counterparts. Cisco Systems has announced plans to reduce its headcount by approximately 7%, while Intel is set to eliminate over 15% of its workforce. These more extensive cuts at other tech firms are largely attributed to slowing growth and a shift in focus towards AI.
