Apple is making a significant shift in its strategic focus leading to layoffs within its digital services division.
- Around 100 employees, including engineers from Apple News and Apple Books, have been laid off.
- The company is prioritizing its investments in artificial intelligence.
- This is one of several rounds of job cuts at Apple this year.
- Apple has rarely undertaken layoffs in its history.
Apple has laid off approximately 100 employees from its digital services division, which affects the teams managing Apple News and Apple Books apps, according to recent reports.
The employees, including engineers, were notified on Tuesday and given 60 days to find another position within the company before their termination.
Apple Books, a platform for e-books and audiobooks, is seen as a lower priority for the tech giant. Meanwhile, the Apple News service remains a focus for the company, despite the cuts.
Apple has historically avoided layoffs, making this reduction a notable shift as it realigns its priorities around artificial intelligence.
Despite these layoffs, Apple continues to expand its AI capabilities, hinting at future technological advancements.
Earlier this year, Apple also reduced staffing by cutting hundreds of jobs when it ended its self-driving car project. Additionally, the company has halted work on its next high-end Vision headset and its in-house smartwatch displays.
The layoffs at Apple are part of a broader trend within the tech industry, which has seen over 134,000 tech jobs cut globally since the start of the year, affecting major companies like LinkedIn and Intel.
Apple has bounced back from a sales slump, reporting increased sales in its most recent quarter, partially attributed to anticipated advancements in AI for the next iPhone.
The company’s market cap remains strong at $3.47 trillion, although it faces ongoing pressures to innovate and stay ahead of competitors.
Apple’s recent layoffs highlight a strategic pivot towards artificial intelligence at the expense of its digital services division.
Source: Nypost