As Apple prepares for the highly anticipated launch of the iPhone 16 on September 9, reports have emerged that the tech giant is laying off nearly 100 employees from its Services division.
According to Bloomberg, the layoffs will affect various teams, including those working on the Apple Books app and Apple Bookstore, marking a significant restructuring within the company.
The affected employees, part of Senior Vice President Eddy Cue’s services group, were reportedly notified of the layoffs on Tuesday. The news has not been officially announced by Apple, and the workers have requested anonymity.
The total number of employees in Apple’s Services division is unclear, but the company had approximately 161,000 full-time employees as of September 2023, according to a Reuters report.
These layoffs come as Apple continues to reorganize its teams in response to shifting corporate priorities, particularly in the area of artificial intelligence (AI).
Despite plans for future updates, Apple Books has been deprioritized within the company’s broader services portfolio. This latest round of job cuts follows earlier layoffs in April, where Apple let go of over 600 employees in California, marking its first significant workforce reduction since the pandemic.
In addition to these layoffs, Apple has also paused work on some of its ambitious projects. Earlier this year, the company suspended development of its high-end Vision headset and canceled plans to create its smartwatch displays.
In February, Apple abandoned its multibillion-dollar initiative to develop an electric car, signaling a pivot toward AI-driven programs. The electric vehicle project, originally intended to produce a fully self-driving car, faced numerous challenges, including shifting goals, staff turnover, and missed deadlines, ultimately leading to its cancellation.
These developments underscore Apple’s evolving focus as it navigates the rapidly changing tech landscape. The layoffs and project cancellations highlight the company’s strategic shift towards AI and other emerging technologies, which are becoming increasingly central to its future growth.
As Apple gears up for the iPhone 16 launch, the company’s internal restructuring efforts reflect its commitment to staying ahead in a competitive industry, even as it means making tough decisions about its workforce and long-term projects.
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