Apple cuts jobs in online services company as priorities shift

(Bloomberg) — Apple Inc. (AAPL) has taken the unusual step of cutting about 100 jobs in its digital services group, part of a shift in priorities for that key division, people familiar with the matter said.

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The company notified affected employees, who worked in 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 is not public.

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

Apple Books has become less of a priority for the company and is no longer seen as an important part of its service offering. According to the insiders, the Books app is expected to gain new features over time. As for Apple News, the layoffs are not a sign of less focus on the app, they say.

Layoffs are relatively rare at Apple, although the company has conducted at least four rounds of layoffs in 2024. Earlier this year, it laid off hundreds of employees when it shut down its self-driving car project as well as an attempt to make micro-LED displays. It also closed a team in San Diego.

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

Services have generally been a growth engine for Apple in recent years. In the last fiscal year, they accounted for more than 22 percent of revenue, compared to less than 10 percent ten years ago. The increase has helped to cushion the occasionally weak demand for devices.

Many of the cuts occurred in the applications division, which is headed by longtime vice president Roger Rosner. Employees were told they had 60 days to find another job at Apple before being laid off. Some of the employees worked on multiple teams, so other areas were indirectly affected as well.

Some of Apple's Silicon Valley competitors are cutting jobs by far more as they grapple with slowing growth and a shift toward artificial intelligence. Cisco Systems Inc. (CSCO) is cutting its workforce by about 7 percent, while Intel Corp. (INTC) is cutting more than 15 percent.

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