Apple Cuts Jobs in Services Group Amid Shift in Priorities

Apple Books app icon in orange and white.

Apple has recently cut about 100 jobs within its digital services group. This move marks a significant shift in the company’s operational priorities. The layoffs, announced on August 28, 2024, mainly impact employees working in the services division, overseen by Senior Vice President Eddy Cue.


Apple Books and News Take a Hit

The job cuts reflect Apple’s strategic realignment, particularly focusing on its Books and News services. Although these layoffs may raise concerns, Apple assures that these services are not ending. Instead, the company is adjusting its resources to fit new priorities, which no longer see Apple Books as a critical area.

Apple Books app icon in orange and white.

Apple’s Focus Shifts, But Services Continue

Apple notified the affected employees earlier this week. Job cuts at Apple are rare, highlighting the company’s evolving approach in a competitive tech landscape. Unlike other tech giants, Apple has avoided large-scale layoffs, especially in the post-COVID era. However, this strategic shift has made some redundancies unavoidable.

Earlier this year, Apple made a similar move by disbanding its Apple Car project, which resulted in 600 job cuts. Despite these setbacks, Apple is committed to improving its digital services. New features are planned for both Apple Books and Apple News.


Optimizing for Future Growth

This shift demonstrates Apple’s ongoing adaptation to market demands and technological advancements. The company is now focusing on areas with higher growth potential. While the layoffs will impact affected teams, Apple’s broader strategy aims to optimize its services portfolio and maintain its leadership in the tech industry.

SOURCES:Bloomberg
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