Apple Cuts Jobs in Online Services Group as Priorities Shift

The company informed the affected employees on Tuesday.

By Mark Gurman, Bloomberg | Updated: 28 August 2024 11:53 IST

Apple Cuts Jobs in Online Services Group as Priorities Shift

Photo Credit: Apple

Layoffs are relatively rare at Apple, but the firm has made at least four rounds of reductions in 2024

Highlights

Layoffs have also affected service team that runs Apple News
Apple Books has become less of a priority for the company
Services have generally been a growth engine for Apple in recent years

Apple took the rare step of cutting about 100 jobs in its digital services group, part of a shift in priorities for the critical division, according to people with knowledge of the matter.

The company informed the affected employees, who worked across several different teams in Senior Vice President Eddy Cue's services group, on Tuesday, said the people, who asked not to be identified because the move isn't public.

The layoffs included some engineering roles, and the biggest cuts were made to the team responsible for the Apple Books app and Apple Bookstore. There were also layoffs in other services teams, including the one that runs Apple News.

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Apple Books has become less of a priority for the company, which doesn't see it as a major part of its services lineup. The Books app is still expected to get new features over time, according to the people. As for Apple News, the layoffs aren't a sign that it's becoming less of a focus, they said.

Layoffs are relatively rare at Apple, though the company has made at least four rounds of reductions in 2024. Earlier this year, it laid off hundreds of workers when it shuttered its self-driving car project as well as an effort to make microLED displays. It also closed down a team in San Diego.

A representative for the Cupertino, California-based company declined to comment on the cutbacks.

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Services have generally been a growth engine for Apple in recent years. They accounted for more than 22 percent of sales in the most recent fiscal year, up from less than 10 percent a decade ago, and the rise has helped cushion at-times sluggish demand for devices.

Many of the cuts happened in the applications organization that is run by longtime Vice President Roger Rosner. Employees were told they'd have 60 days to find another job within Apple before being terminated. Some of the employees worked across multiple teams, so other areas were tangentially affected as well.

Some of Apple's Silicon Valley peers are shedding jobs in far greater numbers as they cope with slowing growth and a shift to artificial intelligence. Cisco Systems Inc. is slashing its headcount by about seven percent, while Intel Corp. is eliminating more than 15 percent.

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