Key Points
- Apple has laid off about 100 employees in its digital services group, impacting teams such as Apple Books and Apple News.
- Apple’s services division’s total number of employees is unclear, but the company had around 161,000 employees as of September 2023.
- The layoffs reflect a shift in Apple’s focus toward AI, leading to the suspension of some projects, including its high-end Vision headset.
- Apple’s sales in China, its third-largest market, declined 6.5% in the last quarter.
Apple Inc. has laid off approximately 100 employees in its digital services group, with the most significant reductions affecting teams responsible for the Apple Books app and Apple Bookstore. According to sources familiar with the matter, the layoffs include engineering roles and other positions across services such as Apple News.
The exact size of Apple’s services division is unclear, though the company reported having around 161,000 full-time equivalent employees as of September 30, 2023. This reorganization reflects a broader strategic shift within Apple as it realigns its priorities, including increased focus on artificial intelligence (AI) initiatives.
Apple has been making notable changes across its product lineup, including pausing work on its next high-end Vision headset and discontinuing a project to design and develop its smartwatch displays earlier this year. These moves are part of Apple’s efforts to streamline operations and focus resources on areas it considers more critical for future growth.
The cuts come amid broader challenges for Apple, particularly in China, its third-largest market. The company has faced headwinds in the region, with sales declining 6.5% in the last quarter. Apple’s efforts to restructure and re-prioritize its operations could be a response to these market pressures and an attempt to maintain its competitive edge in a rapidly evolving tech landscape.
Despite the layoffs, Apple’s services segment remains a crucial part of its business strategy and contributes significantly to its revenue. The services division, which includes the App Store, Apple Music, iCloud, and other digital offerings, has been a bright spot in Apple’s financial performance, even as its core hardware products like iPhones and iPads face fluctuating demand.
By focusing on AI and cutting back on projects that do not align with its strategic goals, Apple aims to position itself as a leader in emerging technologies. The company’s ongoing reorganization and workforce adjustments are likely part of a broader plan to optimize its operations and drive long-term growth.
