Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products
Apple chief executive Tim Cook had said last year that layoffs would only be considered as a 'last resort' AFP

Apple Inc., in a rare move, has reduced its workforce by approximately 100 employees within its services division as part of a strategic realignment within the segment, according to reports.

The affected employees were spread across various teams under Senior Vice President Eddy Cue's leadership, Bloomberg reported, citing people with knowledge of the matter.

The staff were notified of the decision Tuesday.

It comes amid Apple's decision to replace its Chief Financial Officer, Luca Maestri, with Kevan Parekh on New Year's Day.

The layoffs impacted some engineering positions, with the most significant reductions occurring in the team responsible for the Apple Books app and Apple Bookstore. Additional cuts were made across other services teams, including the one overseeing Apple News.

Some of the affected employees had roles that spanned multiple teams, leading to indirect impacts on other parts of the services division as well.

Insiders, according to Bloomberg, suggest that Apple Books is becoming less of a strategic priority for the company, though the app is still expected to receive new features over time. Apple does not see Books as a vehicle for revenue growth based on its performance over the last decade.

However, the downsizing within Apple News does not indicate a diminishing focus on that service.

Apple News is likely to remain a focus for services revenue, as it has a paid subscription option for unlocking magazines and puzzles.

Apple has managed to steer clear of widespread layoffs in recent years, setting itself apart from other tech companies that have slashed hundreds of thousands of jobs since the onset of the pandemic.

However, this is the fourth round of layoffs by Apple in 2024.

The company has recently made other reductions, including the termination of hundreds of employees involved in its self-driving car project and a microLED display initiative earlier this year.

In a May 2023 interview with CNBC, Apple CEO Tim Cook said layoffs would only be considered a "last resort" for the company. This is in sharp contrast with the actions of other major tech firms like Amazon, Google, Microsoft, Snap, and PayPal, all of which have announced significant job cuts in 2024.

The company maintains a global workforce of approximately 161,000 employees, according to data from GlobalData.

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