Apple cuts jobs at online services group as priorities shift

Apple Inc. took the unusual step of cutting about 100 jobs in its digital services group, part of a shift in priorities at the critical division, according to people familiar with the matter.

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

The layoffs included some engineering positions, with the largest cuts coming to the team responsible for the Apple Books app and Apple Bookstore. There were also layoffs on other services teams, including the one that manages Apple News.

Apple Books is no longer a priority for the company, which does not consider it a major part of its service offering. The Books app is expected to gain new features over time, the sources said. As for Apple News, the layoffs are not a sign that it is losing prominence.

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

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

Overall, services have been a growth driver for Apple in recent years. They accounted for more than 22% of sales in the last fiscal year, up from less than 10% a decade ago, and the surge has helped cushion sometimes-sluggish demand for devices.

Many of the cuts occurred in the apps organization, led by longtime vice president Roger Rosner. Employees were told they would have 60 days to find another job within Apple before being laid off. Some of the employees worked on multiple teams, so other areas were also tangentially affected.

Some of Appleā€™s Silicon Valley peers are cutting jobs in much larger numbers as they grapple with slowing growth and a transition to artificial intelligence. Cisco Systems Inc. is slashing its workforce by 7%, while Intel Corp. is shedding more than 15%.

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