Tech Layoffs 2024: iPhone maker Apple cuts jobs in digital services group. Details here

Tech layoffs2024: Apple Inc. has decided to cut approximately 100 jobs within its digital services group, a move reflecting a shift in priorities for the crucial division, according to sources familiar with the situation,  Bloomberg reported.

On August 27, the affected employees—who were part of various teams within Senior Vice President Eddy Cue’s services group—were notified of the layoffs. The sources requested anonymity as the information is not yet public.

Job creation in India

In a separate development, Apple’s focus on expanding its presence in India, as the company moves away from its reliance on China, could potentially generate over 600,000 jobs through its local ecosystem, according to a report by The Economic Times. The report suggests that the tech giant may create around 200,000 direct jobs by the end of the current financial year, with women expected to comprise more than 70% of this workforce.

Government projections indicate that each direct job could result in at least three indirect jobs, leading to a total of 500,000 to 600,000 jobs, according to The Economic Times report.

Additionally, Bloomberg News disclosed that Apple has commenced training thousands of workers at its factory in Tamil Nadu to manufacture the iPhone 16 Pro and Pro Max models.

The job cuts at Apple primarily affect engineering roles, with the largest reductions occurring in the team responsible for the Apple Books app and Apple Bookstore. Other services teams, including the one managing Apple News, also saw layoffs, as per the Bloomberg report.

Apple Books has reportedly become less of a priority for the company, though the app is still expected to receive new features over time. Despite the layoffs, sources indicated that Apple News remains a significant focus for the company.

Layoffs at Apple are relatively uncommon, but 2024 has seen at least four rounds of reductions. Earlier this year, the company laid off hundreds of workers after shutting down its self-driving car project and an initiative to develop microLED displays. Apple also shut down a team in San Diego.

A representative for the Cupertino, California-based company declined to comment on the recent layoffs.

Apple's services division has been a strong growth driver in recent years, accounting for over 22% of the company's sales in the most recent fiscal year, up from less than 10% a decade ago. This growth has helped offset periods of sluggish demand for the company’s devices, according to the Bloomberg report.

The cuts largely impacted the applications organisation, led by longtime Vice President Roger Rosner. Affected employees were given 60 days to find another position within the company before facing termination. The layoffs also had a tangential impact on other areas due to the cross-functional roles of some employees.

Apple's job cuts come as other major Silicon Valley companies are reducing their workforces more dramatically in response to slowing growth and the increasing focus on artificial intelligence. For instance, Cisco Systems Inc. is cutting about 7% of its workforce, while Intel Corp. is reducing its headcount by more than 15%, as per the Bloomberg report.

(With inputs from Bloomberg)