Apple Announces Layoffs in Digital Services Amid Economic Pressures; 100 Jobs Cut, Apple Books Team Hit
September 6, 2024Apple 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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Sources
TechCrunch • Aug 28, 2024
Apple reportedly cuts 100 jobs working on Books and other services | TechCrunchThe Verge • Aug 28, 2024
Apple is cutting jobs across its Books and News appsYahoo Finance • Aug 28, 2024
Apple cuts about 100 digital services jobs, Bloomberg News reports