Apple Inc. recently made the unusual decision to cut around 100 jobs within its digital services division, marking a shift in the company’s priorities. According to sources familiar with the matter, the layoffs affected employees across several teams in the services group led by Senior Vice President Eddy Cue.
The cuts, which occurred earlier this week, focused mainly on engineering roles. The most significant reductions occurred in teams responsible for the Apple Books app and the Apple Bookstore. Other service teams, including those managing Apple News, were also impacted.
The move appears part of a broader strategy adjustment as Apple refocuses its efforts on areas like artificial intelligence (AI). While Apple Books has seen a reduction in its priority status, with the company no longer viewing it as a central component of its service lineup, the app is still expected to receive updates and new features over time.
On the other hand, the layoffs within the Apple News team are not being interpreted as a signal that the service is becoming less critical to the company.
Apple layoffs are rare. However, this is only one time the company has made such cuts recently. Earlier in the year, Apple let go of hundreds of workers when it decided to close its self-driving car project and halted efforts to develop microLED displays. These moves suggest reevaluating projects and resources as the company navigates the fast-evolving tech landscape.
Apple, headquartered in Cupertino, California, declined to comment on the recent job cuts. However, some of the affected employees worked across multiple teams within the services division, leading to a broader, though indirect, impact on other teams.
As Apple shifts its focus towards AI and other emerging technologies, these layoffs may be seen as part of a more extensive realignment of resources to ensure the company remains competitive in critical areas. While the changes are significant, they highlight the company’s strategic flexibility in responding to new technological opportunities and challenges.
