Apple is planning a new internal restructuring that puts jobs at risk. According to a report by financial news agency Bloomberg, about 100 positions will be eliminated in the Books (electronic books) and News (News and News+) apps. Both sections are part of the fast-growing Services sector and are handed over to powerful Services boss Eddy Cue. According to the report, those affected now have 60 days to find a new position within Apple. If that doesn’t work out, they will be fired.
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No big wave of layoffs at Apple
Unlike other big Silicon Valley companies like Meta or Google, Apple has not yet carried out a round of austerity with layoffs of thousands of employees. However, there were small waves of layoffs in the car, micro-LED display and Siri areas (due to restructuring towards Apple Intelligence). It was said that “hundreds of jobs” were also affected here. According to Bloomberg, the layoffs in books have affected not only the app, but also the Apple e-book store. In addition to jobs in the technical field, those who had to do with book distribution were also laid off. The Books app will also receive new functions in the future.
Details about the layoffs at Apple News have not yet been leaked. But these are not a sign that the app will be “less in focus” in the future, the report says. Apple News also includes the News+ paid service along with media offerings, which is still not available in the EU. Apple Books, on the other hand, is now a lower priority for Apple – perhaps also because there is no subscription offer for it and users still buy books and audiobooks individually.
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Overall, services remain extremely important to Apple. In fiscal year 2023, they already accounted for 22 percent of total sales and are growing every quarter. Ten years ago they were only 10 percent. They allow Apple to record regular income because they are usually tied to a subscription model.
The departments that are now dealing with the job losses are those overseen by Vice President Roger Rosner. Some of those affected work on different teams, so other areas are now partially affected as well. Overall, according to Bloomberg, the layoffs are a sign that Apple is resetting its priorities in the services business.
(B.Sc.)
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