Apple is cutting around 100 employees across its Services division, Bloomberg reports. The report says the job cuts are a part of a “shift in priorities.” Employees affected by the decision are being given a 60-day window to secure another position in the company before their termination date becomes effective.
Layoffs are occurring across multiple departments, and layoffs include some employees in engineering roles. Although the layoffs primarily affected the Apple Books app and Apple Bookstore teams, there were also casualties on the Apple News team. The staff reductions are the fourth round of layoffs for the company in 2024.
The report’s sources explain the reasoning behind the layoffs:
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.
Apple’s Services division has been an important growth driver for the Cupertino firm. Services revenue now accounts for more than 22% of Apple’s sales, up impressively from the contribution of less than 10% a decade ago.
Services income has come in handy for Apple, keeping the money coming in during periods of slow device sales. However, this week’s layoffs indicate that even well-performing divisions are not immune from staff cuts.
This is the fourth staff reduction at Apple in 2024. Earlier this year, Apple terminated its self-driving vehicle project, shut down a microLED display initiative, and terminated a team located in San Diego.
Despite these four rounds of layoffs, Apple is showing more restraint when it comes to layoffs when compared with several other tech firms. Intel is eliminating more than 15% of its workforce, while Cisco Systems has announced that it plans to reduce its employment force by 7%.