Apple lays off 100 employees in online services division due to change in strategy
Apple is cutting 100 jobs in its online services division including the Apple Books and Apple News subdivisions. The layoffs come after the company said it wants to change course.
Bloomberg reported that Apple notified affected employees on Tuesday. These include some developer and engineer positions. Most of the jobs are disappearing in the department responsible for the Apple Books app and the Apple Bookstore. Apple News and other departments within Apple’s online services will also have to make do with fewer people.
The layoffs are unusual, precisely because the (digital) service is profitable. The department accounted for 22% of sales in the previous fiscal year, which was only 10% a decade ago. Bloomberg notes that the sales created by the various service apps helped make up for declining handset sales.
Apple is not alone in cutting services. A number of tech companies are letting people go as demand in certain markets declines and employee profiles no longer match them. This includes the shift to applications with artificial intelligence.
For example, IT and networking specialist Cisco cut 7% of jobs and Intel is laying off 15% of its staff.
Apple’s laid-off employees have been told they can look for another job within the company. They are given 60 days to do so.
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