Apple cuts 100 jobs in digital services as tech layoffs reach 134,000 in 2024
Nickie Louise
Posted On August 28, 2024
Apple has cut around 100 jobs in its digital services group, primarily impacting the team behind its Apple Books app and Bookstore, according to Bloomberg News. The layoffs, which include some engineering positions, also affect other service teams, including the one managing Apple News.
This move follows Cisco’s announcement just two weeks ago about a second round of layoffs this year involving thousands of jobs as the company pivots to focus on areas like cybersecurity and AI.
The exact number of employees in Apple’s services division remains unclear. As of September 30, 2023, Apple had about 161,000 full-time employees, according to its latest annual report.
“Apple Inc. took the rare step of cutting about 100 jobs in its digital services group, part of a shift in priorities for the critical division, according to people with knowledge of the matter. The company informed the affected employees, who worked across 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 isn’t public, Bloomberg reported.
Apple has been reshuffling teams as priorities shift, including a focus on artificial intelligence. Earlier this year, the company paused work on its next high-end Vision headset and discontinued a project aimed at designing its own smartwatch displays, according to reports.
Additionally, Apple has been grappling with challenges in China, its third-largest market, where sales dropped by 6.5% last quarter.
Apple’s decision to downsize follows a broader trend among tech giants. Earlier this month, Intel revealed plans to lay off 17,500 employees, accounting for more than 15% of its workforce, as it tries to revive its struggling semiconductor business.
The tech industry, along with crypto exchanges, financial firms, and banks, has been trimming its workforce and slowing hiring in response to economic challenges like recession fears, inflation, and rising interest rates.
Data from Layoffs.FYI, a site tracking tech industry layoffs, shows that over 412 tech companies have cut a total of 134,061 jobs so far this year.
