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 to not be identified since the move will not be public.
The layoffs affected some engineering positions, and the most important cuts were made to the team answerable 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 turn into less of a priority for the corporate and isn’t any longer seen as a vital a part of its service offering. According to the insiders, the Books app is predicted to realize latest features over time. As for Apple News, the layoffs usually are not an indication that the app is less of a spotlight, they are saying.
Layoffs are relatively rare at Apple, although the corporate has conducted not less than 4 rounds of layoffs in 2024. Earlier this 12 months, it laid off a whole bunch of employees when it shut down its self-driving automobile project in addition to an try and make micro-LED displays. It also closed a team in San Diego.
A spokesman for the Cupertino-based company declined to comment on the cuts.
Services have generally been a growth engine for Apple lately. In the last fiscal 12 months, they accounted for greater than 22 percent of revenue, in comparison with lower than 10 percent ten years ago. The increase has helped to cushion the occasionally weak demand for devices.
Many of the cuts occurred within the applications division, which is headed by longtime vice chairman Roger Rosner. Employees were told they’d 60 days to search out one other job at Apple before being laid off. Some of the staff worked on multiple teams, so other areas were not directly affected as well.
Some of Apple's Silicon Valley rivals are cutting much more jobs as they grapple with slowing growth and the shift to artificial intelligence. Cisco Systems Inc. is cutting its workforce by about 7 percent, while Intel Corp. is cutting greater than 15 percent.
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