Apple has taken the rare step of cutting about 100 jobs in its digital services division, according to insiders, as part of a shift in priorities for the key division.
The company informed affected employees Tuesday, who worked in various teams within Senior Vice President Eddy Cue’s service department. The individuals did not want to be named because the move is not public.
The layoffs included a number of technical roles, with the biggest cuts occurring in 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, which doesn’t see it as a core part of its service offering. The Books app is still expected to gain new features over time, the people said. As for Apple News, the layoffs aren’t a sign it’s becoming less of a focus, they said.
Layoffs are relatively rare at Apple, though the company has at least four rounds of restructuring planned for 2024. Earlier this year, it laid off hundreds of workers as it halted its self-driving car project and a push to make microLED displays. It also closed a team in San Diego.
A spokesman for the Cupertino, California-based company declined to comment on the cuts.
Services in general have been a growth engine for Apple in recent years, accounting for more than 22 percent of sales in the most recent fiscal year, up from less than 10 percent a decade ago, and the surge has helped offset sometimes sluggish demand for devices.
Many of the cuts occurred in the applications organization, which is run by longtime Vice President Roger Rosner. Employees were told they had 60 days to find another job within Apple before being laid off. Some employees worked across multiple teams, so other areas were also indirectly affected.
Some of Apple’s Silicon Valley peers are cutting jobs far more than they should as they grapple with slowing growth and a shift to artificial intelligence. Cisco Systems Inc. is reducing its workforce by about 7 percent, while Intel Corp. is cutting more than 15 percent.
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