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On August 29, 2024
3 Sources
[1]
Apple Makes Rare Move of Laying People Off
Apple has decided to make around 100 employees redundant in its digital services group. The redundancies appear to be linked to a shift in priorities and cost-cutting measures. Apple Books and Apple News do not generate significant revenue for the company, unlike other services. Apple has made several waves of redundancies this year, an unusual situation for the company. At the beginning of the year, 121 people were made redundant in a group linked to Siri and AI in San Diego. In February, several hundred people were affected by the closure of autonomous car and micro LED projects. Apple seems to be preparing for a possible recession. The company prefers to invest in projects with higher growth potential, such as generative artificial intelligence and new healthcare technologies. Despite its efforts, Apple is perceived by investors as lagging behind. The company continues to rely heavily on its flagship products such as the iPhone, Apple Watch and AirPods, but it needs to take more risks to reinvent itself and remain competitive.
[2]
Apple Lays Off Staff Across Books, News App Divisions
Apple is laying off some employees across its Books app and News app divisions, amounting to about 100 lost jobs in total, Bloomberg reports this week. Some Apple engineers are losing their positions, and some working on other products and features within Apple's "Services" group are also among the layoffs. Employees that have been notified are being given a last chance to stay at Apple, however, if they manage to find another open job at the company within the next two months. Layoffs are generally uncommon at the trillion-dollar tech giant, especially compared to its competitors, but Apple previously laid off its autonomous vehicle team and other employees earlier this year. While Apple News continues to be important to the company, according to sources familiar with the company's plans, Apple Books isn't and is not being viewed as a critical offering at the moment. The Books app will still be updated in the future, however. This year, Apple has been focusing on AI and its robotics push as it plans to launch a slew of generative AI-powered features with iOS 18. The company has been buying and absorbing AI startups for years now, and has researchers developing AI models in addition to its upcoming Apple Intelligence offering. Apple is also reportedly looking into making robotics products. The company has considered making a robot that follows you around your home, and is working on a smart home display with a robotic arm. This rumored tabletop robot may have a better AI built in than Siri, Apple's voice-powered virtual assistant first launched back in 2011. Tech layoffs more broadly have persisted in recent years as companies tighten up on spending and blame economic challenges, AI ambitions, or geopolitical concerns. In June, Microsoft and Google laid off hundreds of staff each across their respective cloud divisions. Intel confirmed mass layoffs of roughly 15,000 employees in August, and Dell followed suit with plans to cut 12,500 jobs. This week, IBM reportedly cut its research and development department in China, laying off about 1,000 employees in the country as it plans to move its efforts elsewhere.
[3]
Apple Just Conducted a Rare Round of Layoffs. Here Are the Teams and Roles Affected.
The services category was the second-best performing part of Apple in net sales in Q3 2024, second only to the iPhone, which brought in over $39 billion. Apple has laid off about 100 employees who worked on products like the Apple Books app and Apple News, Bloomberg reported Tuesday night. Apple informed the affected employees on Tuesday. The company has yet to make the move public. The layoffs impacted roles in the digital services group, including some engineering positions, but the team working on the Apple Books app and Apple Bookstore faced the most cuts. Apple has given some employees affected by layoffs 60 days to find another position internally before being let go, per the Bloomberg report. According to Apple's latest earnings report, released earlier this month, the services division brought in over $24 billion in net sales in the third quarter of 2024 ending June 29. It was the second-best performing part of Apple in net sales, second only to the iPhone, which brought in over $39 billion. Related: Morgan Stanley Analysts Named Apple a Top Pick Stock and Doubled Their iPhone Expectations -- Here's Why The earnings report showed that services brought in more sales than the Mac (over $7 billion), iPad (over $7.1 billion), and wearables, home, and accessories (over $8 billion) divisions combined. Apple layoffs are relatively rare. Apple CEO Tim Cook said in February 2023 that he viewed layoffs as "a last resort kind of thing." "You can never say never," Cook said at the time. "We want to manage costs in other ways to the degree that we can." Related: Apple Is Expanding What The iPhone Can Do. Here's What's Changing Right Away. Apple did lay off at least 600 employees in April after canceling its 10-year electric car project and ending its effort to make smartwatch screens in-house in February and March. Some of the 2,000 people working on the self-driving, electric car project moved to Apple's AI division.
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Apple, known for its stability, has made an unusual move by laying off approximately 100 employees across its Books, News, and App Store services divisions. This decision comes as part of the company's efforts to streamline operations and reduce costs.
In a surprising turn of events, Apple Inc., a company renowned for its stability and growth, has implemented a rare round of layoffs affecting approximately 100 employees across multiple divisions 1. This move has caught many off guard, as Apple has historically been known for avoiding mass layoffs, even during challenging economic times.
The layoffs primarily impacted three key areas of Apple's business:
These divisions fall under the company's Services segment, which has been a significant growth driver for Apple in recent years 2.
While the exact number of affected employees has not been officially disclosed, reports suggest that around 100 workers have been let go 3. This figure, although significant for Apple, is relatively small compared to the company's total workforce of approximately 164,000 employees.
Apple has not provided specific reasons for the layoffs. However, industry analysts speculate that this move is part of a broader strategy to:
It's worth noting that Apple's Services segment, which includes the impacted areas, has been a key revenue generator for the company. In the last quarter alone, it brought in $21.2 billion 1.
This round of layoffs marks a departure from Apple's typical approach to managing its workforce. The company has traditionally been cautious about reducing staff, even during economic downturns. In fact, Apple was one of the few tech giants that didn't implement large-scale layoffs during the recent industry-wide job cuts 2.
Apple's decision comes at a time when many tech companies are reevaluating their workforce needs. Giants like Meta, Amazon, and Google have all conducted significant layoffs in recent months. While Apple's cuts are comparatively small, they signal that even the most stable tech companies are not immune to the pressures of the current economic climate 3.
As Apple navigates this unusual territory, industry observers will be watching closely to see if this is a one-time adjustment or the beginning of a new approach to workforce management. The impact on the affected services and Apple's overall performance in the coming quarters will be crucial indicators of the effectiveness of this strategy.
Reference
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Major tech companies including Intel, Cisco, IBM, and Apple have announced significant workforce reductions, leading to over 27,000 job cuts in August 2024. This wave of layoffs highlights ongoing challenges in the tech sector.
2 Sources
Major tech companies like Apple, Cisco, and Microsoft are cutting jobs despite strong financial performance. This trend highlights the changing landscape of the tech industry and the importance of career adaptability.
2 Sources
Intel, the semiconductor giant, plans to cut 15,000 jobs in one of the largest tech layoffs since the COVID-19 pandemic. This move comes after a 20% stock drop and follows the ongoing trend of mass layoffs in the tech industry.
3 Sources
Apple reports better-than-expected Q3 2024 earnings, showcasing resilience in a challenging market. The tech giant emphasizes AI initiatives while grappling with declining sales in China.
8 Sources
Apple's expansion plans in India are set to create over 600,000 jobs, with 200,000 direct jobs expected by March 2025. This move signifies Apple's growing commitment to the Indian market and its potential impact on the country's economy.
2 Sources