Apple Announces Layoffs in Digital Services Amid Economic Pressures; 100 Jobs Cut, Apple Books Team Hit

September 6, 2024
Apple Announces Layoffs in Digital Services Amid Economic Pressures; 100 Jobs Cut, Apple Books Team Hit
  • Apple has announced layoffs affecting around 100 employees in its digital services group, particularly impacting the team responsible for the Apple Books app.

  • While layoffs are uncommon at Apple, the company has experienced at least four rounds of job reductions in 2024, including cuts tied to its self-driving car project.

  • Insiders report that Apple News, which also faced some job cuts, remains a priority for the company.

  • The layoffs were first reported by Bloomberg, which noted that affected employees were notified on August 28, 2024.

  • CEO Tim Cook has emphasized that job cuts are a last resort for Apple, highlighting the company's preference for managing costs through alternative means.

  • The Services division has become a crucial revenue source for Apple, contributing over 22% of total sales, a significant increase from less than 10% a decade ago.

  • The layoffs in the tech sector, including those at Apple, are largely attributed to rising costs and the impact of generative AI tools on the job market.

  • High-profile firms, including Apple, are among those making significant workforce reductions amid economic pressures.

  • Experts attribute the rise in layoffs to economic uncertainty and increasing operational costs, which are prompting companies to make difficult workforce management decisions.

  • In August 2024 alone, over 27,000 tech workers lost their jobs, contributing to a total of more than 136,000 tech layoffs in 2024 from 422 companies.

  • Despite the layoffs, Apple is expanding its operations in India, which could generate over 600,000 jobs through its local ecosystem.

  • The introduction of AI features is part of Apple's broader strategy to stimulate growth following a year of declining device sales.

Summary based on 30 sources


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