Apple Inc. is set to reduce its workforce by approximately 100 positions within its digital services group, reflecting a strategic shift in priorities for the division. This decision, reported by Bloomberg, impacts various teams within Senior Vice President Eddy Cue’s services group. Affected employees, notified on August 27, primarily hold engineering roles, with the most significant reductions occurring in the teams managing Apple Books and Apple News.
The layoffs are part of a broader trend in the tech industry, where companies are streamlining operations amid changing market conditions. While Apple is trimming its workforce, the company is simultaneously focusing on expanding its presence in India. According to The Economic Times, Apple’s initiatives in India could generate over 600,000 jobs, with about 200,000 expected to be direct positions by the end of the current financial year. Notably, women are projected to make up more than 70% of this new workforce.
Apple’s recent job cuts also come on the heels of other significant reductions earlier this year, including the closure of its self-driving car project and an initiative to develop microLED displays. Despite the reductions, Apple’s services division remains a key growth driver, contributing over 22% to the company’s sales in the most recent fiscal year.
The company has also ramped up training efforts for workers at its Tamil Nadu factory to produce the upcoming iPhone 16 Pro and Pro Max models, signaling a continued investment in its manufacturing capabilities despite the layoffs.
As the tech sector navigates slower growth and an increased focus on artificial intelligence, Apple’s job cuts reflect broader industry trends. For comparison, other Silicon Valley giants like Cisco Systems Inc. and Intel Corp. are also reducing their workforces significantly.
Apple has not commented on the specific details of the layoffs, but the company has offered affected employees 60 days to find alternative positions within the organization before facing termination. This move underscores Apple’s ongoing adjustments in response to evolving market demands and internal strategic shifts.
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