Apple Inc. Cuts About 100 Jobs in Digital Services Division Amid Strategic Shift

Apple Inc. has made the uncommon decision to reduce its workforce by some 100 positions within its digital services group, signaling a shift in priorities for this vital division, according to sources familiar with the situation, Bloomberg reports.

The layoffs, which primarily affected employees in Senior Vice President Eddy Cue’s services group, were communicated to the workforce on Tuesday. The most significant reductions occurred in the engineering roles related to the Apple Books app and the Apple Bookstore. Additional layoffs were noted within other service teams, including those managing Apple News.

The Apple Books application has become less central to the company’s overall service strategy, as Apple no longer views it as a major component of its services lineup. However, insiders indicated that the Books app is still slated to receive new features in the future. The reductions in the Apple News team do not suggest a decreased focus on the platform, according to those familiar with the matter.

Layoffs at Apple are relatively infrequent, although the tech giant has undergone at least four waves of job cuts so far in 2024. This year, Apple previously laid off hundreds of employees when it discontinued its self-driving car project and scaled back on an initiative to develop microLED displays. The company also shut down a team located in San Diego.

Despite these layoffs, Apple’s services segment has generally been a strong growth driver in recent years, accounting for more than 22% of the company’s sales in the most recent fiscal year—up from less than 10% a decade ago. This growth has helped mitigate periods of sluggish demand for its hardware products.

The majority of the job cuts occurred within the applications organization overseen by longtime Vice President Roger Rosner, with affected employees given a 60-day period to secure alternative positions within Apple before their termination takes effect.