Aug 29, 2024 12:17:00

Apple lays off around 100 employees working on Apple Books and Apple News as part of a shift in division priorities

It has been reported that Apple plans to lay off about 100 employees related to its e-book service '

Apple Books ' and news app ' Apple News .' According to sources, the employee cuts are part of a shift in priorities for key divisions at Apple.

Apple Cuts Jobs in Online Services Group as Priorities Shift - Bloomberg
https://www.bloomberg.com/news/articles/2024-08-28/apple-cuts-about-100-services-jobs-as-part-of-priority-shift

Apple to Cut Jobs in Services Unit, Report Says. What's Behind the Move. | Barron's
https://www.barrons.com/amp/articles/apple-stock-jobs-cuts-6338eb44

Apple Lays Off Staff Across Books, News App Divisions | PCMag
https://www.pcmag.com/news/apple-lays-off-staff-across-books-news-app-services-divisions

According to Bloomberg, Apple's senior vice president, Eddy Cue, announced the layoffs to employees working in multiple teams in the service department on August 27, 2024. The layoffs will affect about 100 employees, including those in charge of the 'Apple Books' and 'Apple Bookstore' divisions, as well as those who run 'Apple News.'

Employees who are laid off will have 60 days to find other work within Apple.

Bloomberg cited the reason for the layoffs as 'because Apple Books is not a high priority within Apple and is not considered a major part of its service lineup.'

As Apple CEO Tim Cook

said , 'Reducing staff is Apple's last resort,' it is rare for Apple to cut employees, and a person familiar with the matter said, 'It is part of a shift in priorities for key divisions within Apple.' In recent years, Apple has seen a trend of growth in sales of non-device services such as Apple Music and Apple TV+, with services accounting for approximately 22% of total sales in fiscal 2023, and in the third quarter of 2024, it was reported that services accounted for 28% of revenue.

Apple has not commented on the job cuts.

The company also announced that Luca Maestri, who joined Apple in 2013 and was responsible for financial support of product marketing, internet sales, and the engineering team, will retire as Apple's CFO on January 1, 2025. Cook said, 'Luca has been a great partner in Apple's operations for a long time. He has helped improve and drive the company's financial performance, engage with shareholders, and instill financial discipline in every part of Apple. We are fortunate to continue to benefit from the leadership and insight he has provided during his tenure.' Apple also said that revenue has grown more than doubled and services revenue has grown more than fivefold during Maestri's tenure as CFO.

Maestri will be succeeded by Kevan Parekh, Apple's vice president of Financial Planning and Analysis. Cook said, 'For more than a decade, Kevan has been an integral part of Apple's financial leadership team. He understands the company inside out, and his sharp intellect, sound judgment and financial talent make him the perfect choice to be our next CFO.'