The American multinational corporation Apple’s digital services division, a major growth area for the tech giant, is experiencing a surprising round of layoffs, according to Bloomberg. The company recently cut at least 100 digital services jobs, including engineering roles and other teams that run Apple News.
Bloomberg confirmed the news, and the tech company Apple declined to comment on the report. Sources state that Apple is adapting its business strategy to navigate current marketing conditions.
Apple informed the affected employees, who worked across different teams in senior vice president Eddy Cue’s service group, on Tuesday. Later, the people requested not to be identified since the move was not public.
The service, Apple Books, has become less of a priority and has still not become part of the lineup. However, the applications expect to receive new features at the time, according to People. As for now, the layoffs are not a sign and are becoming less of a focus.
While layoffs at Apple are rare, they have carried out a series of reductions in 2024. In the same year, the company laid off hundreds of workers when they gave up on the driving car project as well as an effort to generate MicroLED displays. It also closes a team in San Diego.
In 2024, sales and services have featured growth in comparison to recent years. The company accounted for a 22% rise in sales from last year; however, it was a 10.5% decline from what it was a decade ago.
Many job cuts have taken place in the applications organization owned by longtime vice president Rog Rosner. During the job cut, the employees had 60 days to find another job within Apple before getting terminated. Some of the laid-off employees worked across several teams, tangibly affecting other Apple services.
Samsung Trims Network Business Workforce
Meanwhile, Apple’s competitor, Samsung, has announced cutting 20% of its network business workforce in June 2024.
According to a report by Business Korea, a total of 700 jobs were relocated to other Samsung departments. The Korean company has decided to reduce the headcount after a demand slowdown was observed for 5G equipment.
