Apple has laid off around 100 employees from its digital services division, primarily affecting those working on the Apple Books app and Apple Bookstore. Some engineering roles and services like Apple News were also impacted. The decision is part of a broader “shift in priorities” for the division.
The affected employees were reportedly given a 60-day window to secure another position within Apple before their termination became 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. This marks the fourth round of staff reductions for the company in 2024.
The layoffs signal that Apple Books has become less of a priority for the company, which doesn’t see it as a significant part of its services lineup. However, the Books app is still expected to get new features over time. As for Apple News, the layoffs indicated it is less of a focus for Apple.
Apple shifts priorities across services
The Services division has been a key growth driver for the company in recent years. It now accounts 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.
These layoffs follow earlier staff reductions at Apple this year. The company’s approach to layoffs has been more measured than 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.
This wave of staff reductions at Apple highlights the broader trend of economic adjustments within the tech industry as companies recalibrate their strategies amid evolving market conditions. Despite its recent setbacks, the Services division remains critical to Apple’s future growth strategy. Apple has not released an official statement regarding the layoffs.
However, sources familiar with the matter suggest that the affected employees were given severance packages and had the opportunity to apply for other positions within the company.
